Traditionally, an offshore company or other entity was considered to be an attractive vehicle for UK-based investors. For example, during the height of the property boom in the early 2000s, a number of property investment companies were established in the Channel Islands, but with a listing on the London Stock Exchange.
The advantages of an offshore vehicle were as follows:
•All non-resident landlords investing in UK property were subject to basic rate income tax on their rental profits (currently set at 20%). In the past, this was an advantage for corporate investors who were not subject to the tax rates payable by UK resident companies – these rates were as high as 30%.