Real Estate and Building Development
One of the most common uses for offshore vehicles is for non-UK domiciled individuals to use companies outside of the UK to purchase property. This simple procedure ensures that they do not hold assets within the UK Inheritance Tax net and therefore upon death the shares in the offshore company can be passed to next of kin without restriction.
This however is not the only way that property investors can take advantage of offshore structures to mitigate taxation in the UK. It may be possible, with careful planning, to ensure that profits received from building development projects are taxed at a lower than normal rate. The major advantage of utilising Guernsey structures is that we are not subject to capital gains tax in the Channel Islands and this can be used to advantage in the right circumstances.
Marlborough Trust also has experience of structuring and managing land estates in the UK and abroad. It is not uncommon for such estates to be held for the benefit of the family by an offshore entity (put in place to avoid inheritance tax). We have experience and contacts in land management, development and commercial expansion of such estates.