An announcement not trailed prior to today’s Budget is a promise to introduce measures to tax offshore property developers. The government’s stated rationale is that it is unfair to UK-based developers to allow offshore developers to avoid UK tax on profits from developing UK property. The intention seems to be that profits from trading in UK land will be subject to UK tax law under proposed new specific rules (as yet not explained) to be included in the Finance Act 2016.
The information given by the Chancellor today is rather sparse on detail, but it is expected that further information will follow as there is to be a (brief) consultation on the issue. Eversheds is monitoring developments in this area.
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