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Money after selling.

Discussion in 'Dubai property' started by talk, Jul 24, 2008.

  1. talk

    talk New Member

    Can anyone give me advice on what to do with a payment from selling a property.Being in the uk my money is taxed already and I do not want to lodge in the uk after every sale as it can be taxable again.At present banks in UAE are very difficult to use as I can only find one's which allows saving only and no cheque books etc's.I need a system which allows me to make payments at prelaunch but not from uk as money has to go back and forward and gets taxed so many times.

    Needing reliable advice thanks.We must have investors from all over the world who meet this problem daily.What do you do?
     
  2. Doobedoo

    Doobedoo New Member

    Tax Calculation

    Hi Talk, Where the money physically 'goes' or 'resides' is totally irrelevant. If you are a UK resident for taxation purposes (ie you pay tax in the UK), then (and I'll make it simple) you are liable for the taxable gain on a disposal anywhere in the world. It's slightly more complex than this but in the case of Dubai with a zero CGT regime, that's exactly how it works.

    Options are to evade (dodgy) or look to change your residency for taxation purposes ie move to a lower regime - e.g. Dubai (hard if your work/life etc is in the UK).

    Only plus is that you do have the approx £9500 CGT allowance - but remember, HMRC work out the tax due by taking the £9500 off the tax payable and then applying the 18% CGT tax rate - NOT by working out the tax due and then giving you a £9500 'discount' - think about it - it makes a big difference!

    Sorry to be the bearer of bad news...
     
  3. talk

    talk New Member

    Thanks

    Thanks for the info,although not very pleasing.You can imagine that some profit margins in a year can bring your own tax level up to higher % or does cgt remain the same an not interfere with personnel income.Eg 18% on all profit from property world wide,and then not added to personnel income .
     
  4. Doobedoo

    Doobedoo New Member

    Hey, CGT is a flat rate and doesn't influence your income tax band. CGT and income tax are two separate taxation structures so a capital gain e.g. from a property disposal can't potentially push you into a higher inome tax band. Cheers.
     
  5. Demoniise

    Demoniise New Member

    One way out is to give it as a gift...I am willing to recive your money as a gift I meant!!!
     
    Last edited: Jul 24, 2008
  6. talk

    talk New Member

    Gift

    Hi Demoniise,thats a great idea,but first I must be your gift doner.



    Thanks anyway everybody,I got good advice and I'll use it well.
     
  7. buydubai

    buydubai New Member

    Most local banks in the UAE have good online banking systems, Emirates Bank is my favorite, and you can transfer funds and/or get manager cheques issued with just a Savings Account, Emirates Bank even allows you to do this all through their online banking system, obviously you would need someone here to deliver the cheque to the developer.

    Other option is to setup a free zone investment co and get a full service bank account with that, I think there are a couple companies here that can help you do that
     
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