Latest Tax-News Special Feature
There has been no shortage of events in the area of real estate taxation across the world since our last news round-up on this subject, and, as before, two distinct trends continue: while Western governments are turning to property taxes to boost their coffers, certain Asian governments are using them to apply the brakes to surging property markets.
Predictably, given the ongoing debt crisis and governments' need to rake in more cash, property taxes are on the rise in Europe.
In Italy, the local property tax, IMU, which had been scrapped under Silvio Berlusconi's administration, has been reintroduced to much consternation from property owners and those politicians opposed to Mario Monti's government. The tax has in fact been providing a major part of the increased revenue in the Monti government's "Save Italy" budget, which was approved at the end of 2011 and is designed to enable the country to reach fiscal balance by the end of 2013.
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Offshore Companies Owning UK Residential Property Need To Take Urgent Action
Earlier this year the UK Government announced far-reaching proposals to change the way that non UK companies which owned UK residential property would be taxed. Previously these companies, like non UK resident individuals, had not been liable to pay Capital Gains Tax (CGT). Under the new proposals this would change and those companies would now be subject to CGT, broadly calculated on the difference between the acquisition value and the disposal value.
There are many companies who acquired UK property many years ago so their base value for CGT purposes will be very low. On resale of the property those companies are going to face a very heavy tax bill.
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