Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Thank you for your question..
Please advise -
do you have other income arising in the UK?
will this be the only property in your portfolio?
Thank you for your reply.
Property income is chargeable to UK income tax/Corporation tax irrespective of your residency status.
In honesty, changes to CGT rules pertaining to residentail properties held by non resident landlords means you can't avoid capital gains tax if there is a gain on eventual sale.
As far as income tax goes, here again you can't escape it. You are taxed on the net income after allowable expenses to cover repairs and maintenace, insurances, letting agent and other professional fees, etc.
There is little to choose between holding one property in the name of LTD company or in your own name.
As far as capital gains tax goes, as a LTD company your gain would be taxed at corporation tax rate of 20% (current rate) and there is no gains annual allowance available to companies.
Individuals would pay CGT at the rate of 18%, 28% or a combination of both depending on the taxable income including the gain in the year of sale. Individuals get gains annual allowance before calculating CGT payable.
I have provided you with an outline of where you would stand in terms on taxation on rental income and capital gain.
I hope this ishelpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
As this is your only income in the UK, it is likely to be within the threshold of basic rate tax at 20%.
In that case the whole interest payable would also be allowable at same rate in arriving at profit for tax calculation.
I hope this is helpful.
Here is a link to HMRC website that clarifies who is entitled to UK personal allowance for income tax
For CGT you will get a gains allowance (current year £11,100). there is no indexation allowance.
Just checking to see if you need further clarification on any points raised or I have answered your question.