The UK tax implications?Limited company seems better but not by a whole pile?- am I missing anything obvious?
I will pay Irish tax in first instance but get a credit for it but ultimately yes it's the UK tax that's relevant to me.The UK tax implications?
Where are you getting this mortgage? At least rerun with realistic numbers.Im considering a 300K purchase in Ireland - deposit of 75k borrowing 75% interest at 4%
Only at 20% plus USC if you are the landlord.I will pay Irish tax in first instance but get a credit for it but ultimately yes it's the UK tax that's relevant to me.
im notWhere are you getting this mortgage? At least rerun with realistic numbers.
Only at 20% plus USC.
You'll also need to check the corporate residence of the company and how it impacts on that.
Personally, I think you'd be crazy to invest using a company, but that's your call.
Given you only have 75K (25%) in cash, why bother? seems barely worth the hassle and risk.
I would be surprised if there are no better business opportunities to invest in that gives you that type of return.
I get credit for USCOnly at 20% plus USC if you are the landlord.
You'll also need to check the corporate residence of the company and how it impacts on that.
Personally, I think you'd be crazy to invest using a company, but that's your call.
I wont be borrowing from a bank- so no mortgage. The E225k will be lent to the company at 4% from myself and a family member .Where are you getting this mortgage? At least rerun with realistic numbers.
Double taxation on future capital gainsWhy crazy?
Why would you ser up a company to do that? You're taking money out of your left pocket to put it into your right pocket. Yes, the interest would be tax deductible for the company, but creates taxable income for you.I wont be borrowing from a bank- so no mortgage. The E225k will be lent to the company at 4% from myself and a family member .
Thanks for thatDouble taxation on future capital gains
Corporate residence uncertainty
Necessity for costly professional advice relative to the sum you're investing.
Heavily negative buy-to-let enviroment here.
It means what it means, and you'll probably have to pay for good advice to get to the bottom of it.Can you explain what you mean by corporate residence uncertainty? If I move back to Ireland I will close the company and pay uk tax on withdrawing the funds as Ive included in my example
Again you'll have to get proper advice on this.Thanks for the CGT advice- assuming there is a gain is it normal to have to pay CGT in both countries- there's no agreement in relation to this unlike income tax?
My idea was to possibly also use this company to make other investments in the uk.Why would you ser up a company to do that? You're taking money out of your left pocket to put it into your right pocket. Yes, the interest would be tax deductible for the company, but creates taxable income for you.
You've obviously thought of something I'm missing if you think it's not crazy.
Thanks for pointing this out!!It means what it means, and you'll probably have to pay for good advice to get to the bottom of it.
Put it this way, if your company is deemed to be UK-resident and the properties are in Ireland, which country has primary taxing rights and how does the DTT work?
Again you'll have to get proper advice on this.
Yes, if you're not actually borrowing money, any perceived advantage disappears completely.My main interest was the treatment of interest- being allowable for a company basically and not as an individual but you feel there's no advantage at the end of the day when all the calculations are done and if I was to proceed it would be simpler to do in my own name?Would that be a fair summation?
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