Residential Property AbroadWritten by The Chesterfield Group
It is increasingly common for individuals to own more than one property and in many cases first investment after family residence is in a holiday home. Whether you are buying a place in sun, a country retreat or a city centre apartment, if it is in a foreign country you will be exposed to an unfamiliar legal system and to taxes in country concerned. It is therefore important, even before a contract is signed, to decide whether to make purchase in your personal name or through a company. To change course later will always be expensive. It is however usually possible to reduce exposure to tax.Buying in a personal name Assuming property is for personal occupation, form of tax, which is most easily avoided, is estate or inheritance tax. The death of person in whose name property is registered will normally give rise to a liability which may exceed 40% of value at time and tax will usually have to be paid before property can be sold or transferred. Buying in a corporate name If, however, property is purchased in name of a company, death of owner does not create a need to transfer property. The property will be owned by company, and it is shares in company which will form part of owner’s estate and not property itself. If company is formed in an offshore territory, British Virgin Islands for example, which does not impose taxation on non-residents, objective of avoiding foreign death taxes will have been achieved. There is a bonus, in that name of owner of company need not be a matter of public record, thereby maintaining confidentiality.
| | Yacht and Ship Registration in the Isle of ManWritten by The Chesterfield Group
The maritime history of Isle of Man dates from eighteenth century and Island is recognised internationally as an efficient and well- run centre for both registration and management. It was ranked third in world by Port State Authority in September 2004.The Marine Administration was established in 1984 and offers 24 hour cover for both yacht and ship owners. Local legislation has also been amended to adopt “Megayacht” code and enable commercial yachts exceeding 24 metres to be registered on Island. Benefits of registering a vessel on Isle of Man include •A zero rate of tax for shipping related activities •No annual tonnage dues •A low registration fee •Attractive VAT arrangements •Security of mortgages registered on Island •A Demise Charter Register, both in and out •British Flag and support of British Consular services •Flexibility in requirements for registered owners including limited partnerships Merchant ships to be registered in Isle of Man should be registered with one of approved Classification Societies and it is a requirement that functions of effective management are undertaken by a ship management company, resident in Isle of Man, having responsibility for ship.
|