Using the Isle of Man to Invest in UK Commercial Property
The UK commercial property market has proven to be an extremely successful asset class over recent years, providing investors with strong income streams as well as capital growth. At Peregrine, we have many clients who have achieved excellent yields and large returns on their commercial real estate investments in the last 5 years.
Initially this investment was focussed on London but in the last 12-18 months other regions around the UK have seen rapid growth in property investment. By way of an example, we have just assisted a client in the sale of a commercial property in the north of England achieving a sales price of more than £14 million, and we have other deals in progress.
The Isle of Man is the ideal low tax jurisdiction in which to structure commercial real estate investments in the UK for the following reasons:
- In addition to a zero percent (0%) corporate tax rate, there are no capital taxes in the Isle of Man which means that any capital gains on the disposal of the property are tax free for the investment company
- The Isle of Man benefits from being close to the UK geographically and in terms of its legal system. It is very common for Isle of Man companies to acquire UK real estate meaning that lending institutions and legal advisors are comfortable dealing with Isle of Man companies
- Companies incorporated and managed in the Isle of Man can register for VAT as though they were based in the UK which enables them to recover the VAT on the purchase of the property and all other expenses incurred in respect of the property business
- The Isle of Man has a first class reputation as a stable international financial centre with experienced and skilled professional advisors able to service the needs of sophisticated international investors
Peregrine Corporate Services has over 25 years experience assisting clients investing in UK real estate transactions ranging in value from £500,000 to £50 million. As a result we have built a large network of advisors able to assist clients throughout the investment process from finding a suitable property to securing finance, managing the relationship with tenants, filing tax returns and securing a sale.
We would be delighted to assist anybody interested in investing in property in the UK.
Peregrine Corporate Services is licensed by the Isle of Man Financial Services Authority.