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Property polfolio in UK

Property polfolio in UK

Old Jan 21st 2012, 11:49 am
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Default Property polfolio in UK

I have a property portfolio back home in UK and am now trying to think of how i can reduce my tax bill - a friend is recommending that i set up a company in the Middle East and use that to buy the properties and reduce my tax bill

How do other people deal with this issue ?

Any other ideas or tips ?
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Old Jan 21st 2012, 12:02 pm
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Default Re: Property polfolio in UK

Where did i mention that i want to avoid paying tax ? - i said reduce tax bill !
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Old Jan 21st 2012, 12:06 pm
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Default Re: Property portfolio in UK

Generally if the income is arising in the UK it is subject to UK tax, no matter the location of the owner.
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Old Jan 21st 2012, 12:37 pm
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Default Re: Property polfolio in UK

Originally Posted by Option1 View Post
I have a property portfolio back home in UK and am now trying to think of how i can reduce my tax bill - a friend is recommending that i set up a company in the Middle East and use that to buy the properties and reduce my tax bill

How do other people deal with this issue ?

Any other ideas or tips ?
You would be mad to hold assets in the Middle East... there are no asset protection laws, or where there are they are hopeless. I'm not even sure if UAE law, for instance, even recognises trusts.

The common practice is a Cayman or Bermuda Trust. Very tricky game and generally best avoided if you ever plan to live in any of the houses. They would only shield capital gains - rental income (as Meow correctly states) would also be deemed UK income. Given that the property is in the UK it's pretty hard to argue with that logic.
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Old Jan 21st 2012, 1:01 pm
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Default Re: Property polfolio in UK

Ignore the other posters

I am dr lovesmore sibanda, a Nigerian living in Bahrain with speshalist knowledge of this field. Please send me 5000 of your English pounds to open your account. You will never pay tax again, will attract young women in bars and become endowed like a horse

Please. Also send me your credit card details to speed up the process
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Old Jan 21st 2012, 1:21 pm
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Default Re: Property polfolio in UK

Originally Posted by Option1 View Post
Where did i mention that i want to avoid paying tax ? - i said reduce tax bill !
Yeah, sorry, I read the other thread and realised you were out here in the Middle East. I thought you were in the UK and trying to avoid paying taxes.

Apologies.
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Old Jan 21st 2012, 2:43 pm
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Default Re: Property polfolio in UK

I see that you posted this same question a year ago and Meow and I both gave you the same answer. See you in 2013.
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Old Jan 21st 2012, 2:53 pm
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Default Re: Property polfolio in UK

Originally Posted by Tockalosh View Post
Ignore the other posters

I am dr lovesmore sibanda, a Nigerian living in Bahrain with speshalist knowledge of this field. Please send me 5000 of your English pounds to open your account. You will never pay tax again, will attract young women in bars and become endowed like a horse

Please. Also send me your credit card details to speed up the process
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Old Jan 22nd 2012, 5:00 am
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Default Re: Property polfolio in UK

Originally Posted by Option1 View Post
I have a property portfolio back home in UK and am now trying to think of how i can reduce my tax bill - a friend is recommending that i set up a company in the Middle East and use that to buy the properties and reduce my tax bill

How do other people deal with this issue ?

Any other ideas or tips ?
If you want to go down that route you're better off setting up a company offshore (BVI etc) but the fact you have income in the UK means you'll pay UK tax at one level or another regardless. I can speak to our sister company about this but I'm sure they'll come back with the same answer.

You may have a considerable IHT liability too with a property portfolio in place and may need to look into that if you haven't done so already.

If you're buying property as an investment it might be worth considering other countries markets as well - or look at alternatives that might allow tax free growth if you're resident in a tax free jurisdiction.

N.
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Old Jan 22nd 2012, 9:34 am
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Default Re: Property polfolio in UK

No.
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