Purchasing a property with a UK company

 That's great. all sounds very positive. Makes a good change for the normal moans on here.

Dear kev2006n,

I believe I can clear up your comments about my Company Westholme Corporate Developments Limited and Wincham Consultants Limited having the same UK address. The structure of my UK Company is that I am a Shareholder & Director of my Company which means I have ownership and full control and responsibility for it. A UK Company also requires a UK Registered office/address and a Company Secretary and these services for my Company are provided by a Company called Companies 4U which is a subsidiary Company within the Wincham Group and who is a Companies House Formation Agent and offers professional services for new start UK Companies/businesses. This would suggest to me that all the Companies within the Wincham Group will have the same UK Registered address and most likely the majority of their client's Companies so you will probably find lots of UK Companies with the same UK address that you have mentioned. I do not believe this is an uncommon situation in the UK Accountancy world.

norm de plume, has made the comment about Residents and non Residents being Taxed evenly in Spain but due to Spain's serious financial issues could it not be suggested if Spain do make it a level platform for Inheritance Tax that they bring Residents Tax up and in line with non Residents, appose to dropping the non Residents Tax. One thing Spain can count on is property owners passing away and Taxes being paid by the Beneficiaries so it would not be a financial advantage to them to loose the huge sums collected by dropping it.

Spain did have to drop Capital Gains Tax for non Residents to 18% to match that of Spanish Residents but in 2010 Spain increased it back to 19% and it goes up to 21% for Residents in some Tax situations.

fort collins property management companies is a system in which properties are purchased easily.This is a good site for the selling and purchasing of the property.this system requires your interest about what tyoe of property you want.This company provides whatevere you required. In this company many properties are bought and sold.

This message was last edited by milwaukee12 on 31/05/2012.

This message was last edited by milwaukee12 on 14/06/2012.

Hi Guys

Very interesting thread.

I have been in touch with a similar company that i dont want to name who suggest I set the same  company structure up.

Basically to set up a UK company and transfer the spanish property (no transfer tax?) into this UK company to avoid IHT.

Then was informed if the UK company is a "trading company" then the whole valuation of this company is not included in my final estate so my beneficiaries resident in the UK would not have to pay inheritiance tax asmy estate does not exceed my allowance if it excludes the UK company.

Can anyone comment on this and explain to me the financial pitfalls of going down this route? Has anyone on this forum have any positive or negative comments are even better surely someone has been down this route and can give a testimony for one of the companies mentioned on this thread.

If something sounds to good to be true then it normally is.

Regards

As others opinions, for expensive properties would take the risk. But it depends on where you want ot live, the expenses in the registered office in UK, and what you do in Spain.

This subject has been kicking around for years, I spoke to the most prominent providor back in 2007 and I have no doubt that they are a serious professional company who believe that they are providing a legal system of property ownership. Unfortunantly, and unsurprisingly I have never seen a testiment from anyone that has used the process.

Last year the eminent Spanish lawyer Antonio Flores published a statement from the DGT (tax office)

“In relation to the tax scheme consisting in legally transferring a property to a UK-based company, with the sole purpose of avoiding IHT in Spain through relocation of the taxation of the shares of the said company to the UK, there cannot be a favourable response by this Tax Department in relation to the lawfulness of the scheme. Only via the appropriate inspection procedures will the Tax Office be able to establish whether the scheme conforms to the law or, as the case may be, infringe it in which case, the Tax Office will be able to regularize the anomaly by initiating the required procedures to combat tax fraud.”

This publication of this notice is a response to the offering made by a number of service providers (SP), most notably ******** who are promising that Spanish IHT can be legally avoided by transferring a Spanish property into a UK Private Limited company.

Please be advised that until the DGT does not officially rule otherwise, the employment of the above scheme to avoid Spanish IHT could be deemed tax evasion and, where the unpaid tax exceeds €120,000, a criminal offence.

This whole process needs a test case which would clear it up once and for all

I've spokren with Malolm Roach (founder of Wincham), who has a villa in Calpe, he is a very straight forward guy who honestly believes in his purchase system. However if we ever miraculously manage to find a property that suits our needs, we would quite simply buy it in our only son and his partner's names. On the other hand a guy who we often rent a villa from, has three kids and expectations of a plethora of grand children. He has gone the Wincham way, as he wishes to provide a luxury holiday home for his family members in perpetuity.The problem as I see it with the latter is, that his kids, who include a doctor, dentist and accountant will be able to afford whatever type of holidays they wish, albeit never having the time to take them.

Many of the objectors to these schemes appear to either not fully understand them, or would not benefit from them personally, as someone said previously, a test case would be helpful.  

Has anyone gone down the Wincham route and then reverted back to the Spanish deed of ownership if so how easy was it and at what cost

It would mean a transfer, not a difficult procedure - a contract between the current owners (the company i guess) and the proposed new owner(s) it would then be notarised. Can't see anyway of getting round paying the 7% IPT transfer tax though.

One of the major selling points of this scheme was the ability to change ownership by transfering shares in the company - I guess this is not working for you

team gb

my property is in a gb company so the shares are in my name i wish to transfer it back to me

would the 7% IPT tax still apply would any solicitor be able to do this 

That'll be interesting fenboy, at the notary you will have to sign for both the buyer and seller 

Any lawyer will be able to convey the property from one entity to the other but as you are not selling the company I can't see how you can avoid the IPT tax , but better ask a lawyer that question.

Also be mindful of the sale price you declare, that will have tax implications both in the UK and Spain - seek professional advise.

Hi guys 

it’s been a few years since this post has last conversed.

in hindsight what is everyone’s thoughts in the whole process and dealing with said companies ‘winham’ for example, and also now with brexit looming