Are returns subject to Capital Gains Tax?

In many cases, yes - returns from UOWN investments may be subject to Capital Gains Tax (CGT):

How it works: When you sell your shares in a property SPV for more than you paid, the profit is typically treated as a capital gain.

Annual allowance: You have an annual CGT allowance (£3,000 for 2024/25 tax year). You only pay tax on gains above this threshold.

Rates: CGT rates for property are currently 18% for basic rate taxpayers and 24% for higher rate taxpayers (as of 2024/25).

Calculation: Your gain is the difference between what you invested and what you receive back (minus the original investment and allowable costs).

Note: Tax treatment can vary depending on how the investment is structured and your personal circumstances. Always check with HMRC or a tax advisor.