Structuring UK Property Investments Through Luxembourg

Following a change in UK law in 2015, it has become harder for non-UK residents to make tax-efficient investments in UK property. Luxembourg offers a solution, providing opportunities to invest in UK residential property and, to a certain extent, commercial property.

Introduction of a capital gains tax on non-UK residents who dispose of UK residential properties

The UK's Finance Act 2015 (the Act) introduced a capital gains tax (CGT) on the disposal of residential property by non-resident individuals (a rate of 18% or 28%), trustees (a rate of 28%), closely held companies (a rate of 20%) and funds that are not widely marketed (a rate of 20%). Closely held companies are legal entities controlled by five or fewer persons.