Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
1. Limited companies are taxed under the Corporation Tax (CT) regime, currently 19%. Companies are not subject to the Capital Gains Tax (CGT) regime. Any capital gains of losses being passed through the company's trading account. Currently the UK is regarded a tax haven in the EU with its low rate of CT. Whether this rate can be sustained post Britexit is a moot point and there has already been adverse media comment on the subject.
2. Taxable rental income is reduced by various expenses. Examples are [source: Which]:
'The most common types of expenses you can deduct are:
- water rates, council tax, gas and electricity
- contents insurance
- costs of services, including the wages of gardeners and cleaners (as part of the rental agreement)
- letting agents' fees
- legal fees for lets of a year or less, or for renewing a lease of less than 50 years
- accountant’s fees
- rents, ground rents and service charges
- direct costs such as phone calls, stationery and advertising for new tenants
The expense should be incurred wholly and exclusively as a result of renting out your property.'
There are no ranges of income for tax purposes. For individuals it depends upon personal circumstances whether higher tax rates are imposed.
3. You will be taxed on the gain under CGT rules. You have a non cumulative Annual Exempt Amount (AEA), currently 11.3K, to offset any gains. CGT rates deffer depending on the type of property. For residential it is 18% or 28%, otherwise 10% or 20%. In each case it is a combination of rates depending on the individuals' income including the gain in the year of disposal. Companies merely incorporate the gain in their trading accounts and have no AEA.
I do hope that you have found my reply of assistance.