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I am the sole shareholder of a company based in the Middle

Resolved Question:

I am the sole shareholder of a company based in the Middle East. It makes a profit within the region and pays no tax on its earning of any kind because of the tax jurisdictions that it operates in.
It pays me a dividend every month based on the profit that it makes into my UK bank account (I am a resident of the U.K.)
I pay the tax on those dividends in line with the U.K. Tax system.
Am I liable for any other for of tax for the money I receive?
Submitted: 10 months ago.
Category: Tax
Expert:  Sam replied 10 months ago.

Hi

Thanks for your question

It depends on how much this is and what other income you might have - so please advise further

Thanks

Sam

Customer: replied 10 months ago.
Hi Sam,Thanks for coming back to me. The company in the Middle East pays me around £3000 per month and my only other income is from the rental of a flat I own here in the UK which amounts to a further £550 per month.BestSion
Expert:  Sam replied 10 months ago.

Hi

Thanks for your response

Then you do not have a further tax liability on the dividends - as this combined income sees you under the 40% tax bracket.

£550 x 12 = £6600

£3000 x 12 = £36,000

Combined annual income £42600

Less personal allowances £11,000

Taxable income £31600 - basic rate band £31785

And tax will not arise on the rental income as covered fully by your personal allowances ( as not used against dividends)

However you still should be making a full declaration to HMRC via self assessment on both the rental income and foreign dividends so do make sure you register for self assessment if you have not done so already.

Do let me know if I can assist further - but if you have all you need, then it would be appreciated if you could rate me for the level of service I have provided (or click accept) as this ensures Just Answer credit me for my time

Thanks

Sam

Sam, Accountant
Category: Tax
Satisfied Customers: 13810
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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