HMRC targets beneficial ownership structures
While non-doms are not required to pay income or capital gains tax on their overseas investments, any money received from property within the UK is taxable.
However, should the individual decide to buy the property through an overseas company or trust, it is not clear who the actual owners are and, therefore, who should pay the resultant tax on profits from the property.
Consequently, HM Revenue & Customs (HMRC) is set to clamp down on such beneficial ownership structures, including those in Panama and the British Virgin Islands.
This follows deals with both Switzerland and Liechtenstein requiring individuals with offshore bank accounts in these countries to declare their assets.
