The UK property market will face fresh competition for offshore investment money as funds in the Crown Dependencies will soon be able to invest in French property without prohibitive French tax charges.
The imminent removal of the annual 3% tax on gross value of French property by France, which currently applies to investors based in Jersey, Guernsey and the Isle of Man, may threaten any burgeoning stabilisation in the UK property market, says Sykes Anderson Solicitors. Tax changes will reduce demand for UK investment properties and apply additional downward pressure on capital values in the UK market, which has been left reeling after 18 months of price declines, says the firm. Companies and trustees managing investment funds in the three offshore territories will be able to invest ...
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