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:
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.
It depends if the rental income plus your other income pushes you into the 40% or even the 45% [unlikely] tax bracket. The 40% bracket starts at 33.5K. Remember, if you are a citizen of an EEA country, then you have a Personal Allowance (PA), currently 11.5K, to offset income.
Please be so kind as to rate me before you leave the Just Answer site.
That is so kind, I await your rating.
Thank you for your support.