Buying Property, TAX and more.....TAX

OSCF

Hi All,

ok, sorry if any of this sounds obvious or too simple even...im merely after some pointers (and yes im a total newbie to this stuff)

i intend to buy a property, here in the uk with a relative. Both first-timers, for the puposes of renting out for approx 5+yrs. we've viewed a few so just a matter of picking one.

1. ive read about forming a company and placing any income under this roof. moreso, its favourable as it qualifies for tapering relief if you own a company and things like maintenance, repairs and general items and service associated with running this rental can also be claimed for in terms of tax.

2. corporation tax. if the above is true i understand that C.Tax will apply. in that case, would it not be better to form the company offshore to mitigate this. im aware of charges/taxes etc if i were to bring the money into the uk.

3. i read in todays paper that Gordon Brown is going to look into Tapering more closely and may increase taxation on this.

so, (sigh) in short, where should i start? im currently trying to make contact with some specialist Tax solicitors for similar advice. Shall i buy the property then deal with the company formation? is anyof this actually a good/bad idea???

many thanks for any info to help me with the first step :j

kennyboy66_2

I'd post this on the cutting tax board & you should get some response.