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I am planning to start a company that will be buying land in

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I am planning to start a company that will be buying land in the UK for the purposes of development. My investors are from the GCC and more specifically Qatar. I am a UK citizen and will be running this company from the UK. What tax considerations should I be aware of with respect to the following:
1) Incorporating and funding the company
2) Distribution of profits
3) Any tax treaties to be taken advantage of
4) Stamp duty and capital gains tax
5) Anything else of note to be considered

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

1. You can buy a new ready made company from many company formation providers. The Articles of Association are worded so loose these days to permit almost any legal activity to be undertaken.

2. Any surplus made by the company would be subject to Corporation Tax (CT) at 20%. You would be well advised to set up a Quatari company to mop up any profit from the company thus avoiding UK CT. Qatar does have a CT viz:

'Corporation tax is payable on a progressive scale on any income in excess of QR 100,001, from 10% up to a maximum rate of 35% on income in excess of QR 5 million. There are a number of allowable deductions including interest payments, salaries, rentals, depreciation etc' [source: Expat Focus]. However it applies mainly to foreign companies.

Alternatively the investors could take profits by billing the company for services.

3. Qatar has a Double Taxation Treaty with the UK. Any tax paid in the UK is allowable as a tax credit against any Qatar tax on the same stream.

4. When the company buys land in the UK then Stamp Duty Land Tax or its Scottish Equivalent will be payable.

5. You will need a Registered Office in that part of the UK in which you are located and have to complete annual CT declarations on line, you can file abbreviated accounts with Companies House CH) as you do this. There is also the Annual Return to CH to be filed.

I do hope that you have found my reply of assistance.

Customer: replied 1 year ago.
Thanks for the response Keith, with respect to incorporation issues, would there be any benefit or further consideration if this were to be set up as a fund?

I think not.

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Customer: replied 1 year ago.
Am still not sure of the best route to take for incorporation. Would a limited partnership be preferential as opposed to a normal company? Possibly based out of Jersey?

A limited partnership would expose partners to Income Tax (IT) on the partnership's profit at their marginal tax rate.

Using a company based in a tax haven is perfectly acceptable. However, these services do not come cheap as they are big business there. With registered office facilities, local directors etc the costs soon rack up. They may be OK for the likes of Starbucks, Vodafone and Amazon who in any event will have further holding companies in say the BVI, but I doubt your operation under such a regime would be cost effective. Remember that these days the UK with a CT of 20% is now considered a tax haven within the EU.

bigduckontax and other Tax Specialists are ready to help you

Thank you for your support.