Changes to UK tax rules prompt non-UK property owners to re-evaluate property structures
Recent changes to the UK tax rules and the introduction of “overseas entity” registration have led many non-UK property owners to reassess their property holding structures.
Consequently, numerous owners are either disposing of their properties or opting to de-envelope them.
In a recent high-profile case, a cross-departmental team from Druces successfully managed the sale of a UK property owning vehicle. This entity was established in one jurisdiction, operated from another, and beneficially owned from a third. Our private wealth lawyers devised a pre-sale reorganisation strategy that saved the client thousands of pounds. Corporate lawyers coordinated with legal professionals in other jurisdictions to ensure the restructuring was completed within the seller’s stringent timeline. Additionally, our real estate team ensured lenders were fully onboard with the new structure, allowing the conveyancing process to proceed smoothly to completion and beyond.
The transaction was complex and highlighted the exceptional proficiency of Druces LLP’s teams in real estate, private wealth, and corporate law. Their expertise in structuring, negotiating, and reporting arrangements for disposing of enveloped properties or deenveloping them, all while maintaining a ‘client first’ focus, was instrumental in the successful outcome.
Parveen Abbas, Head of Residential Real Estate at Druces, commented: “This successful transaction exemplifies our commitment to providing seamless and costeffective solutions for our clients, navigating complex legal landscapes with precision.”
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