Squatters could gain from millionaires' attempts to beat Stamp Duty as house prices fall – Telegraph Blogs

Squatters could gain from millionaires' attempts to beat Stamp Duty as house prices fall – Telegraph Blogs

Squatters could be surprise beneficiaries of wealthy homebuyers’ attempts to avoid new higher rates of stamp duty, solicitors claim, while estate agents predict that a "trickle-down effect" could cause house prices to cease rising in London and follow falls already seen in the rest of the country.
Chancellor George Osborne raised stamp duty from 5pc to 7pc in last month’s Budget on properties bought for more than £2m. He also set out to block a loophole which enabled homebuyers to avoid stamp duty, capital gains tax (CGT) and inheritance tax (IHT) by holding property in offshore trusts and companies, where Mr Osborne said sales would be taxed at 15pc in future plus “a large annual charge”.
But some experts question how HM Revenue & Customs (HMRC) will identify the beneficial owners standing behind offshore trusts and whether the Chancellor’s outspoken intervention against what he called “morally repugnant” tax avoidance might backfire.
Steven Porter at McGrigors, a commercial law firm and tax specialist, told me: “Purchasing a property via a corporate trustee, while adding complexity to the purchase may not add significant cost. If structured properly, it could avoid the stamp duty charge and the annual charge.
“HMRC has been devoting substantial resources to examining ......