Property investors will be hit by new UK tax extension
GUERNSEY'S finance industry and local property investors are set to be hit by the impact of new measures announced in George Osborne's UK Budget.
An extension to the tax levied on companies owning properties (Annual Tax on Enveloped Dwellings, or ATED) was among the changes with potential implications for the island, according to industry experts.
Property investors in Guernsey also face a new charge on UK residential properties, it has been warned.
Intertrust Reads Private Clients director Mark Stone and assistant manager Garth van Huyssteen highlighted the potential impact of both proposed measures.
'2013 saw the introduction of a new tax on UK residential property with a value of over £2m. owned by companies. Without warning this scheme is to be extended in April 2015 and April 2016 to other properties with a value between £500,000 and £2m.,' they said.
'In addition and following hints in the Autumn statement, the government will introduce a charge to Capital Gains Tax in April 2015 on UK residential property owned by non-resident individuals.
'These proposals may affect islanders investing in the UK residential property market and possibly have some impact on parts of the Guernsey finance industry.'
