- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "What kind of taxes for a foreign company buy property in UK?"
Collapse
-
Originally posted by maxima View PostWhat if I had a EU company (and I was a director and sole owner) and it invested in a property in the UK and I lived there permanently...
Would it attract tax on the capital brought across the border?
1. If your company is non-UK resident, then you as its owner shouldn't be UK resident, to make it tax-efficient.
2. Following on from 1 above, your non-UK resident company will pay income tax on its rental income in the UK @20%. If the company sells the property, as of now there is no CGT, but there is a proposal to tax it, effective April 2015.
Leave a comment:
-
its a whole way around.. the funds might be generated in US, taxed in EU (in lower tax country) by the company in question and then used to buy the property in the UK precisely for the purpose of not paying UK (higher) tax. And then letting me live there. So its not offshore scheme.. Just am trying to optimize tax.. Am I wrong in assuming this might work ?
Leave a comment:
-
Originally posted by Bobb View PostThanks guys.. I was thinking of paying a modest salary and accumulate the capital gains elsewhere outside the UK... would it avoid remittance claim (I am not sure I know what it is though)
But my main concern was - taxing the capital used to buy the house.. not what will happen with my income etc.. I might live in it 180 days a year for example and be non-resident or some other ways..
this is pipe dream stage yetnot a plan
If the funds are generated from an offshore source, kept offshore, and you're not UK tax resident they won't be taxed here. Unless you use them to buy a UK property, in which case you'd be bringing foreign income into the UK (remitting it) and it most likely would be taxed.
The rules around tax residency are complex, so get advice whilst you're at planning stage to ensure you take the necessary steps now for the outcome you want.
Leave a comment:
-
Thanks guys.. I was thinking of paying a modest salary and accumulate the capital gains elsewhere outside the UK... would it avoid remittance claim (I am not sure I know what it is though)
But my main concern was - taxing the capital used to buy the house.. not what will happen with my income etc.. I might live in it 180 days a year for example and be non-resident or some other ways..
this is pipe dream stage yetnot a plan
Leave a comment:
-
Check out the stamp duty that is payable. And the annual supplement that can be payable because it is company owned. Then there is the bik that is likely assessed on you and taxed as income. Then there is the question of whether the eu company becomes uk resident and taxed on its income.
some or all of the above are likely depending upon your and the companies exact circumstances.
Leave a comment:
-
Depends if you're tax resident here, and whether you're claiming the remittance basis for foreign income. If you are, then buying a property counts as a remittance so you would be taxed on it.
Leave a comment:
-
What kind of taxes for a foreign company buy property in UK?
What if I had a EU company (and I was a director and sole owner) and it invested in a property in the UK and I lived there permanently...
Would it attract tax on the capital brought across the border?Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: