need some help with savings and taxes

stolt

we sold our house back in september last year and made £250,000.00 from the sale, we are currently renting and are taking a break from buying a house partly as our money is now tied up.

my brother in law is a succesful business man in dubai and lives out there and is a tax exile. I sent the money to him last september to invest in properties etc which he has done and its done very nicel. How can i limit the amount of tax paid when the money comes back to my account witht he interest.

I obviously had £250k fromt he house sale so surely as its been taxed once when the money was put in my account from the hosue sale, so i'm assuming thats safe apart from tax on the interest in the account i put it in.

Now my brother in law mentioned that if he starts transferring money into my bank account the inland revenue will pick up hoe much money i have in my account by the interest earned and will want to know where it came from. thats not a problem as its nothing illegal.

When i come to buy a house, i was going to use the £250k i had from a previous house sale, and then take a loan from my brother in law for the remainder, and pay him off monthly would that incur any tax on it.

lastly if that would incur tax, if he bought the house in his name and then gave it to my daughters (only 5,3,1 yrs old) as a gift he said in 7 years there would be no tax and it can be transferred to my name.


thanks, really hard trying to get my head round all this.

stolt

just to bump this to see if i can get any help

Cook_County

All your brother in law seems to be doing is acting as a nominee so your share of your Dubai income is reportable in the UK whether or not brought to the UK.

If you borrow from your brother you will need to withhold & pay UK tax on interest you pay to him.

Buying as a nominee has zero UK tax effect and there are no tax savings at all of buying in the kids names.

I assume you have Wills that also address issues of Shari'a law since you have significant assets in Dubai.

stolt

Cook_County wrote: »

All your brother in law seems to be doing is acting as a nominee so your share of your Dubai income is reportable in the UK whether or not brought to the UK.

If you borrow from your brother you will need to withhold & pay UK tax on interest you pay to him.

Buying as a nominee has zero UK tax effect and there are no tax savings at all of buying in the kids names.

I assume you have Wills that also address issues of Shari'a law since you have significant assets in Dubai.

thanks, so the first 250k that i had earnt from the house sale wont be taxed again will it? If my brother in law bought the house in his name and we paid him back that would be a different kettle of fish, bearing in mind he is a tax exile could this be possible and we have arrangement to pay rent to him. After a some years could gift us the house.

is that possible?

is there any other suggestions on how i can limit the amount of tax paid?