It is expected that, following the publication of draft legislation on 11 December 2012, owners of residential property holding companies will seek to take action before the changes come into effect in April 2013.
Of the various options available to BVI companies, most steps will involve one or more of the following transactions, which will be governed by BVI law:
- a liquidation of the company with the property being distributed in specie to the shareholders
- a transfer of properties held by the company either into personal ownership, to third party purchasers or to other corporate entities
- a distribution in specie of the property to the company's shareholders
- a share redemption in consideration of a transfer of the property to the company's shareholders
We provide a brief summary of the most important factors to consider when a BVI company takes each of the above mentioned steps.
For more detailed information and advice on BVI issues arising from the draft UK legislation please get in touch with your usual Forbes Hare contact or one of the key people listed below.