Importance of Taxation

Whilst many investors still look to the United Kingdom for property investment, the question of taxation should not be overlooked. The British Tax Authorities look very closely into the affairs of overseas property investors.

Since 6 April 1996 when the Non Resident Landlord Tax Scheme was introduced, the affairs of overseas investors are focussed through specialist divisions of the Inland Revenue. Unless due care is taken, investors can make costly errors under the complex rules governing Income Tax, Withholding Tax and possibly Inheritance Tax. Therefore expert advice is recommended.

An investor’s failure to effectively plan and consider the tax consequences can result in the unnecessary payment of tax or indeed the underpayment of tax which can result in interest and penalties.

A proper and effective management  of an investor’s affairs can usually reduce their tax liability to a minimum or even eliminate it altogether.