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  • FIRST POST
    • danfitzjohn
    • By danfitzjohn 18th Apr 17, 9:24 PM
    • 22Posts
    • 2Thanks
    danfitzjohn
    Expat landlord returned to the UK - tax advice
    • #1
    • 18th Apr 17, 9:24 PM
    Expat landlord returned to the UK - tax advice 18th Apr 17 at 9:24 PM
    Hello,


    Have recently returned to the UK to work after 8 years working abroad. We have 3 buy to lets with no mortgages with a combined income circa 1,700 per month across the properties.


    I will be working and taxed at the higher rate income whereas my wife will not work for the foreseeable future (approx. next 3 years)


    So the questions I have are:


    1) Is it worthwhile transferring the titles all into my wifes name for tax reasons?
    2) Is it worth taking out mortgages on the properties to create some debt so as to show expenditure on the houses? I could use the capital to fund our own house purchase..
    3) Would it be worthwhile setting up a company to put the 3 houses in?


    Any advice would be appreciated as I'm a bit rusty on the latest rules!


    Many thanks


    Daniel
Page 1
    • deannatrois
    • By deannatrois 18th Apr 17, 9:38 PM
    • 4,586 Posts
    • 6,475 Thanks
    deannatrois
    • #2
    • 18th Apr 17, 9:38 PM
    • #2
    • 18th Apr 17, 9:38 PM
    I really do think it might be best to see an accountant given your income. Could save you a fortune. People on here are brilliant, but don't always have the same expertise.
    • Pixie5740
    • By Pixie5740 18th Apr 17, 9:45 PM
    • 10,097 Posts
    • 13,878 Thanks
    Pixie5740
    • #3
    • 18th Apr 17, 9:45 PM
    • #3
    • 18th Apr 17, 9:45 PM
    1) Possibly or you could own them as 99:1 tenants in common with your wide being the 99.

    2) It's not worth paying interest just to save a bit of tax. You'll pay out more than you'll save especially as a higher rate tax payer.

    3) Doubt it. You'd pay Capital Gains Tax when you sell the properties to the limited company. The limited company will then pay Stamp Duty Land Tax with the additional 3%.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • G_M
    • By G_M 18th Apr 17, 9:52 PM
    • 39,261 Posts
    • 44,615 Thanks
    G_M
    • #4
    • 18th Apr 17, 9:52 PM
    • #4
    • 18th Apr 17, 9:52 PM
    Who's been paying the tax for the last 8 years? You, your agent, your tenants, or your accountant?
    • danfitzjohn
    • By danfitzjohn 18th Apr 17, 10:34 PM
    • 22 Posts
    • 2 Thanks
    danfitzjohn
    • #5
    • 18th Apr 17, 10:34 PM
    • #5
    • 18th Apr 17, 10:34 PM
    Hi,

    The simple answer is no one has been paying tax as 1 property each and 1 joint means the individual income has been below tax threshold for offshore landlord
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