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Are you utilising offshore trusts?

Unlocking Capital Allowances for Offshore Trust-Owned Commercial Properties

Protecting your real estate portfolio? Discover how UK commercial property owners with offshore trusts can still benefit from Capital Allowances.



Offshore trusts have long been the choice of astute property investors looking to safeguard their real estate portfolios across generations. By setting up these trusts, UK commercial property owners can ensure that their valuable assets are not only protected from potential future economic and regulatory changes but also passed on securely to the next generation.

However, the intersection of offshore trusts and UK tax relief, especially in relation to capital allowances, can often be muddled. Here, we demystify this relationship and present a guide on how owners can still harness the benefits of Capital Allowances.

Your Eligibility and Why It Matters

Just because your commercial property is held in an offshore trust doesn’t negate your rights to claim Capital Allowances. UK tax laws have provisions that permit claims on commercial properties, irrespective of the ownership structure, so long as the income generated by these assets is taxable in the UK.

With Capital Allowances, commercial property owners can substantially reduce their taxable profits, leading to significant savings. This can be particularly advantageous for high-value properties or those with extensive fixtures and fittings that qualify for allowances.

Claiming Capital Allowances, especially for offshore trust-owned properties, can be intricate. It demands a deep understanding of both the UK’s Capital Allowances system and the nuances of international trusts. Thankfully, our team is well-versed in bridging these two domains, ensuring you can confidently make claims without inadvertently crossing regulatory lines.

“Capital Allowances serve as valuable tax reliefs for commercial property owners, allowing them to offset the cost of certain assets against their taxable profits. Yet, it’s a frequently overlooked avenue, especially amongst those who own their properties via offshore trusts”

Matt Siddell, Offshore Partner

Partner With The Best

Matt Siddell | Offshore Partner

With an economics degree from the University of Manchester, Matt spent 2001-2004 working in investment and offshore Trust & Company services in Jersey, Channel Islands.

In 2004, he established Kin which traced heirs to unclaimed inheritances. Matt grew his first business to a team of 45 people and traced heirs to estates exceeding Β£100m in value.

Since 2011 Matt has worked in the real estate industry, buying and developing property, running events and operating a networking club in London for the owners of businesses in the real estate sector.

Matt has an enviable black-book of contacts that continues to grow as he operates Qandor from Dubai where he now lives, helping select partners and clients grow their businesses.

Speak With An Expert