The UK property market attracts a diverse range of international investors – from high-net-worth individuals and family offices to global corporations. For many, investing through offshore structures offers legitimate advantages in terms of privacy, tax efficiency, succession planning, and asset protection. However, evolving UK legislation means that offshore structuring must be approached carefully, with professional guidance and full regulatory compliance.
Fraser Bond partners with leading legal and tax specialists to help clients structure UK property investments optimally, ensuring long-term security, transparency, and financial efficiency.
Offshore structures refer to legal entities or trusts established outside the UK – in jurisdictions such as the British Virgin Islands (BVI), Jersey, Guernsey, Isle of Man, or Cayman Islands – that are used to hold UK real estate assets.
They are typically set up as:
Offshore companies (e.g., International Business Companies)
Offshore trusts or foundations
Special Purpose Vehicles (SPVs) linked to investment portfolios
These structures are legal and widely used in cross-border property investment, but are subject to specific UK tax rules and disclosure regulations.
Offshore entities can help separate personal wealth from business activities or geopolitical risk, especially for individuals in politically unstable jurisdictions.
Although UK transparency rules have increased, certain offshore jurisdictions still offer a degree of anonymity – useful for HNWIs and family offices concerned with public visibility.
Holding property in a company or trust allows for seamless wealth transfer, avoiding complex probate processes and enabling controlled distribution across generations.
While rules have tightened, certain offshore structures may still offer advantages in managing inheritance tax (IHT) and capital gains tax (CGT) if used strategically and lawfully.
Properties valued over £500,000 held in offshore companies may be subject to ATED, with annual charges ranging from £4,400 to over £260,000.
Exemptions may apply if:
The property is rented out commercially
It’s part of a property development or trading business
Offshore buyers pay:
Normal SDLT rates
A 2% non-resident surcharge (since April 2021)
Higher rates for second homes or corporate acquisitions
Since April 2015, non-resident companies and individuals are liable for CGT on the sale of UK residential property.
From April 2019, this was extended to include commercial properties and indirect disposals (e.g., shares in property-holding companies).
Since 2017, UK residential property held in offshore companies is subject to IHT – regardless of the domicile of the owner.
Under the Economic Crime (Transparency and Enforcement) Act 2022, overseas entities owning UK property must now:
Register with Companies House
Disclose beneficial ownership
Comply or face financial penalties and asset freezes
Fraser Bond can help clients navigate these regulatory changes with the assistance of trusted legal counsel.
Jersey & Guernsey – Well-regulated, with strong legal systems and financial infrastructure
Isle of Man – Favoured for trust structures and family office management
BVI & Cayman Islands – Popular for corporate ownership and international real estate holding vehicles
Singapore & Hong Kong – Used by Asian investors for tax treaty advantages and robust offshore financial systems
Fraser Bond offers tailored support for international clients seeking to structure UK property investments via offshore entities. Our services include:
Introductions to qualified legal and tax advisors with cross-border expertise
Structuring guidance for individual, family office, or institutional needs
Due diligence and risk analysis of offshore vs. onshore ownership models
Property sourcing and acquisition support aligned with legal structures
Coordination with fiduciary, corporate service, and trust providers
We ensure every decision is fully compliant, commercially viable, and aligned with your long-term objectives.
Offshore structures can be a powerful tool in managing UK property investments – offering benefits in asset protection, tax strategy, and intergenerational wealth planning. However, with recent UK legal reforms and transparency initiatives, expert advice is essential to ensure compliance and safeguard value.
At Fraser Bond, we provide holistic support that spans property acquisition, structuring, and ongoing asset management. Whether you’re acquiring a single residence or building a cross-border portfolio, we help you structure it smartly, securely, and strategically.
