Collas Crill hosts UK property tax seminars in Guernsey and Jersey

Collas Crill is hosting seminars in Guernsey and Jersey on changes to stamp duty land tax (SDLT) and capital gains tax in the UK.

In the March 2012 Budget, Chancellor George Osborne announced higher SDLT rates of 7% for individuals and 15% for non-natural persons buying residential property worth £2 million or more in the UK.

The Chancellor also announced a consultation on the introduction of an annual property charge on residential properties worth £2 million or more that are owned by non-natural persons. In addition, he proposed the extension of capital gains tax to gains on the sale of UK residential property above £2 million by non-resident non-natural persons.

Channel Islands law firm Collas Crill has teamed up with leading UK firm Thomas Eggar LLP to consider the likely implications of the proposed new rules for trust and company service providers in both islands.

More than 300 local professionals are signed up to attend the events on 24 and 25 July, each of which is now fully subscribed.

Fiduciary expert at Collas Crill Edward Stone said: "Until the new rules are finalised following the consultation process, prospective purchasers of UK residential property above £2 million and their advisers are somewhat in the dark as to the right ownership structure. Where UK residential property above £2 million is already held within a structure, careful consideration about the ongoing suitability of the current ownership structure will be needed. There will only be a short window for restructuring between the new rules being finalised and their coming into effect in April 2013.

"Our seminar will help finance professionals in the Channel Islands to understand how the rules (subject to how they are finally implemented) may affect their clients and the structures they manage for them. We will look at how they should prepare, what they may need to do before April 2013 in respect of existing UK property holding structures, and how such structures may well look in the future.

"We will also examine the local legal and regulatory framework in Guernsey and Jersey, to provide comprehensive coverage of the relevant local issues. The fact that these seminars are over subscribed shows that this is a very real issue for Channel Islands financial services providers."

The events take place at The Royal Yacht Hotel in Jersey on Tuesday 24 July and at the OGH and Les Cotils in Guernsey on Wednesday 25 July.