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Foreign Company Investment in UK SPV Ltd

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Hi all,

I am in the very fortunate position to have family assets abroad, we are currently divesting from one region of the world and have significant cash in hand ready to reinvest. I currently have a BTL SPV Limited company in the UK which holds my BTL investments/income. What structure should any foreign investment in my Ltd take? 

I do not want to give up control because this will hinder my ability to get mortgage finance as the director/shareholder of the company in future. I was thinking a loan agreement? I also don't want to make myself or company liable for vast amounts of tax if any investment is seen to be income. 

Thanks in advance!


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It will be difficult to get an answer to this in a forum. Tax and, more specifically, anti avoidance will depend on the jurisdiction investing and to some degree whether or when investors there are going to relocate to the U.K and what their relationship is to you. 

A U.K. company with non resident participators is subject to an additional 2% SDLT on property purchases. The definition of participator for SDLT purposes is widened for these purposes and any loan with security could affect the tax treatment.

There also needs to be a clear audit trail for source of funds so you’ll need to documents loans or gifts to you or your company carefully and identify where funds originally came from.

it is unlikely for an investment of capital, wherever it is sourced from, to be treated as income for you or the company. The tax issues will be in the main related to the tax treatment of purchases for SDLT, disposals for future gains and the treatment of those investing as well as the tax treatment of any income derived from that investment in the jurisdiction invested from.

There are various property investment vehicles such as REITS, QNUPs and EPUTs that could be utilised separately from your own limited company. These are more suited to UHNWIs (ultra high net worth individuals) and your own company could help manage assets. You will probably need to get specialist advice at some point. Good luck!





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