Tax Considerations

There are some attractive tax breaks relating to buying property in the UKl. These should be factored into the investment equation. Professional tax advice should be obtained.

• Rental income can be set against a variety of tax allowances thereby reducing income tax liability.
  
  
• The most significant of these is loan interest. By “gearing up”, it is possible to structure a “tax neutral” investment. In turn, this provides an enhanced return on the equity contribution.
  
  
• One of the most significant tax advantages is that non-resident / non-domiciled investors should not be liable to capital gains tax in the UK on disposal of the property.