Quote:
Originally Posted by agohil
Hello
I am just about to sign my contrat for a studio appartment in the pacific development and was just wondering if anyone could advise if it would be better for a high tax band earner to buy the property via a 'company' to avoid paying 40% on rental or income for sales if i brought the money back into the uk?
Also does anyone know what service select can provide in finding people to rent the apprtments...
Thanks
Atish
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hi i checked with the inland revenue and they told me that all i would pay is capital gains tax (18%), which you declare on your tax return form, when selling the property. as a UK citizen you must pay tax on your worldwide capital gains. BUT you do NOT also have to pay income tax, even if you bring the money back to UK...they don't make you pay twice! you have an allowance of approx £9000 a year which is non-taxable, so I have put my property in two names, to effectively double the non-taxable allowance. this is the case for when you sell your property.
i've just re-read your post and i'm not too sure about the tax situation on rental income (silly me!).
I suggest you contact your tax office yourself to confirm this, as i may have been given wrong information.