News: February 2019

The end of Opco/Propco structures in the hotel industry?

18 February 2019

In the UK market, the tax regime has been an important driver behind Opco/Propco structures. Until now, it has normally been tax efficient for the property interest to be held in an offshore company (the Propco) and leased to an onshore operating entity (the Opco) for the simple reason that any growth in value of the underlying property has then escaped UK tax. From 6 April 2019 that is going to change. As from that date, the UK is extending the scope of capital gains tax so that increases in the value of property after that date will fall into charge to UK tax on a sale or other disposal of the land even if the owner of the property is offshore.

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Council challenges Sadiq’s hotel call-in

8 February 2019

In November 2018, London’s Mayor, Sadiq Khan, called in the Kensington Forum Hotel application which had previously been refused by the Royal Borough of Kensington and Chelsea (RKBC) planning committee (primarily for the reason of insufficiently high design quality and harm to the surrounding area). The Mayor’s first reason given for the call-in was that […]

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