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Buy To Let investment in the UK with my Brother outside UK

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Rohan

New Member
Hi I am planning to invest in UK property market with my Brother who is not UK resident. We plan to cash purchase and let it out, my question is how easy/difficult is to get a person from outside UK to partner and invest with me? We plan to set up a company with equal ownership and go for the deal, totally new to the real estate market. Any advise/guidance will be much appreciated. The investment is of close to £140k.
 
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Longterminvestor

Administrator
As long as the company is UK based for tax purposes then it does not matter (from the company's point of view) where the shareholders are based. I assume it would be up to your brother to ensure his tax affairs in his homeland are addressed correctly.

However, check this with an accountant/legal adviser.
 
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Rohan

New Member
Thanks for the response. Yes his tax affairs are all sorted and addressed, all declared and paid. And i am a full time employed so mine are sorted as well. I will engage with a legal adviser soon.
 
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FWL

Active Member
Have you looked at using your cash as deposits for a number of properties with debt making up the balance? Correct me if I’m wrong but I still think you can offset interest charges against company income.
 
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Rohan

New Member
Have you looked at using your cash as deposits for a number of properties with debt making up the balance? Correct me if I’m wrong but I still think you can offset interest charges against company income.
Hi
Can you share more insight on what exactly is the idea?
 
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Mike Wilson

New Member
Hi I am planning to invest in UK property market with my Brother who is not UK resident. We plan to cash purchase and let it out, my question is how easy/difficult is to get a person from outside UK to partner and invest with me? We plan to set up a company with equal ownership and go for the deal, totally new to the real estate market. Any advise/guidance will be much appreciated. The investment is of close to £140k.
As far I know. You are the residence of UK, so you will declare ur property tax in UK and the company too while your partner should need to declare their investment in their respected country. You know a year before a global scam was disclosed by ICJ, my means Panama. So that is the reason you and your brother declare assets in your respected countries.
 
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Rohan

New Member
As far I know. You are the residence of UK, so you will declare ur property tax in UK and the company too while your partner should need to declare their investment in their respected country. You know a year before a global scam was disclosed by ICJ, my means Panama. So that is the reason you and your brother declare assets in your respected countries.
Yes that is correct... I will be declaring everything in the UK and my brother will be doing all the right thing in parent country to make sure we are legally compliant.
 
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Longterminvestor

Administrator
@Rohan

Rather than buying one property funded by cash and, being taxed on your rental income, you could split these funds to create deposits for 2 or 3 houses for example (using mortgage funding to cover the additional acquisition costs). If acquried in a company then you can offset the interest charges against rental income thereby reducing your company profits and tax.
 
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