Real estate tax
We can advise on:
Real estate investment
- Direct and indirect acquisition structures
- Tax transparent and offshore vehicles
- Exit planning
The UK is a particularly tax efficient jurisdiction for investment in real estate by overseas investors.
We can advise on how to minimise the indirect tax costs on acquisitions, how to shelter direct tax on UK rental income and prepare for the tax implications of an exit or how to establish tax efficient structures for holding real estate in a joint venture.
Real estate finance
- OpCo/PropCo structures
- Loan-to-own acquisitions
- Debt restructuring and debt for equity swaps
There is a huge amount of debt secured on real estate which is going to need to be restructured or repaid in the next few years. This continues to put limits on the banks’ ability to lend and requires creative thinking around how to raise new finance from real estate assets, or how lenders can exit debt portfolios or restructure existing debt.
We can advise borrowers and lenders on using real estate assets to raise finance in the capital markets, the issues with acquiring debt as a means of acquiring the underlying real estate or the tax effects of debt buybacks and restructurings.
Developments
- Forward funding transactions
- Joint ventures and profit-sharing arrangements
- Residential development structures
With the constraints on the availability of debt finance, development transactions are heavily dependent on equity investment. As a consequence, development structures are more complex and tax considerations play a critical part in maximising returns.
We can advise on how best to structure a development, for example, as a forward funding, a joint venture or a profit-sharing arrangement. We have considerable experience of commercial, residential and mixed use schemes and of the issues faced by local councils, property owners and developers.
Corporations
- Pension funding structures using a group’s real estate assets
- HQ buildings and occupational leases
- Sale and leasebacks
UK corporations with pension fund deficits could consider using their real estate assets to fund that deficit. We can advise on whether these structures would be suitable for your company and explain the legal and tax implications.
We also have considerable experience of acting for major occupiers and corporations acquiring new leases or seeking to maximise value from their real estate assets.
Real estate funds and listed vehicles
- REITs, PAIFs
- Jersey unit trusts, FCPs and other offshore funds
- Limited partnerships
Tax leakage is a major factor in determining the efficiency of a fund structure. There is an increasingly competitive international market for funds and recent developments in the UK have seen new onshore fund structures designed to put the UK funds industry on a more equal footing with its off-shore competitors.
We can advise on the choice of vehicle and jurisdiction for establishing a property fund, the tax issues facing the fund and the tax consequences for UK and overseas investors in the fund.