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Ask JGM Your Own Question
JGM
JGM, Solicitor
Category: UK Property Law
Satisfied Customers: 10085
Experience:  30 years experience in property law.
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I own a UK property through a Cayman Islands Company. I live

Customer Question

I own a UK property through a Cayman Islands Company. I live in the Cayman Islands. I am now buying a second home in the UK and it seems I have to pay far more VAT if the Company buys it. Shall I buy it personally, through my wife or in my kids names who are 10&12. Or is there another way to reduce this liability ? Thanks
JA: What state are you in? It matters because laws vary by location. Has anything been filed or reported?
Customer: Im not in a state. I live in the Cayman Islands and the house is a UK property
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 1 month ago.
Category: UK Property Law
Expert:  JGM replied 1 month ago.

VAT isn't payable on a residential dwelling. Do you mean stamp duty land tax? If a company buys a residential dwelling in the U.K. an extra 3% of the price is payable in stamp duty land tax. If an individual buys the house this tax doesn't apply as long as the individual doesn't own any other real estate worldwide. If they do then the same tax applies to them. So as long as your wife doesn't own any other property you can buy in her name. Your children are too young. There is no other way to avoid this liability. I hope that helps. Please leave a positive rating so that I am credited for my time.

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