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Any body like to share any info, It's a fact if you lived in Gibralter and had houses in the UK then no tax would be due. So why not open up a Ltd company in Gilbralter and pay no tax im currently in the process looking more into this as my freind who is a solicitor has been doing this for year and last year he earned 80K and paid £343 in tax. where as i paid 19K in tax last year.
Your opinions would be greatly appreciated.
Thanks
Alex M Oakhill Mortgage Services Ltd |
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alex,
my understanding is that this tax exemption (referred above) applies only to the indivdiual. in the case you are referring to, the person must hold the assets in their name (not Ltd).
i think what you might want to look into is creating and offshore company (Guernsey, Jersey, Cayman, Gibralter etc etc). the company then will not have to pay tax (gains or income).
if you want the company to dividend money / salary to you then you will pay tax when it comes onshore (the UK). you can spend the money offshore (when abroad) and no tax is incurred.
best scenario. offshore company (Guernsey) and live in tax haven i.e. Monaco. then no company tax or personal.
tom |
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Hi Guys,
It is my understanding that if you are a landlord living abroad then the letting agent (if you use one) has to deduct some of the rental income to cover paying tax. Correct me if I'm wrong on this ! Not sure how it works for every country you live in though.
Alex, Why don't you set up your own property management company. That way you can charge 15% management fees on all your properties. As long as your management company makes less than £10k pa then there is no corporation tax payable (as long as the money stays in the company).
The upside is that the company may purchase it's own properties too (as far as I'm aware) and hence you get a tax free sum each year building up in the company that you can use to purchase more property.
Tom : I like the idea of living in Monaco. That's now on my (very long) list of things to achieve !
FM |
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Hi Funky,
I live in Germany and my letting agent WOULD take 22% tax from my rent unless I got myself a tax exemption number (think its not called that but...), its basically where I agree to pay the Inland Revenue the tax when I fill in my Non residents tax form.
The letting agent take this "number" and doesnt take the tax off.
That way I get my full rent less their fees & VAT.
I suppose its so you can look at your expenditure over the year and allow tax deductions, whereas if you get it taxed at the letting agent, you would possibly have to try and get a rebate back...I think?
Hope that helps!
Simon |
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You can set up a trust in the Isle of Man for around £5,000. You pay most of your profit from the UK Co to the IoM as a management fee. You then pay 5% tax in the IoM 2% to the people who run your trust and 3% as a contribution to the government. It is totally transparent and the UK taxman will be told about what you are doing upfront
Mark Hawthorn
www.landmarkfinance.co.uk |
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mark,
in your opinion at what size portfolio does it become worthwhile using an offshore co. as the costs look quite prohibitive?
tom |
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Wow! The information in the replies above is full of dangerous half truths and simply wrong information. All income (inc property)arising in the UK is subject to UK tax. Where a landlord is non-resident the letting agent or tenant MUST deduct 22% - usually more than the tax which would be due. All UK citizens (resident & non resident) get a personal allowance against their UK income. Non-resident people & companies are exempt from Cap Gains Tx after the 5th April following emigration as long as they stay non-res for 5 yrs. Companies are UK res if either they were incorporated in the Uk or they are controlled by UK residents. See FAQ's on http://landlordstax.co.uk |
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It's certainly one for the professionals. One of the reasons to seek advice from an expert on international taxation. |
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It's certainly one for the professionals. One of the reasons to seek advice from an expert on international taxation. |
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Hi there,
If any of you would like to know more about completely eradicating your Capital Gains burden, then please call me on 01483 236600 or email: ian@connaughtpartnership.com
Thanks
Ian |
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Sorry, but can this be done by trading the stock markets?
I trade in the USA markets, i live in England, but can i trade under a LTD set up in Dubai or something? lol. |
