Thanks but not what I wanted to hear. Why must I disclose my gains if my investment is staying in the UAE. Eg if I play with my investment and say make £500,000
over the next few years and then decided to bring it to the UK then yes it makes sense to disclose it and pay that 18% tax on all my gains. However, if I decide to move to the UAE then why should I have to pay 18% tax on my investment when the investment is based in the UAE. I dont have to pay 18% each year do I. I mean I can pay 18% of any gain I decide to bring back to the UK whether in 1 year or after several years. I know by paying 18% all together I guess I loose yearly allowance of £9000 but I think its a strong possibility I may move to UAE. I dont want to have to pay tax in this case. Can you clarify further please. Where are you based?
Quote:
Originally Posted by richie83
hi mate, i too am from UK and have invested on al marjan in another development. UK residents must pay capital gains tax on all worldwide gains. therefore is you make money in UAE when you sell your property, although you won't pay any taxes out there, you will have to declare your gains in the UK and pay capital gains, which from last month is now 18%. however you have an allowance of approx £9000, so you will only pay 18% tax on anything above it. i have put my property in two names, which means tht each of us have an allowance of £900) on our share, effectively meaning together we won't pay anything on the first £18000 (hope this makes sense!).
now if you want to bring the money back to UK, you will not pay any further taxes as you already paid capital gains, they don't make you pay twice...this is what i was told by inland revenue.
i'm not too sure about the UAE account, but i would imagine you might need one for the sale. or perhaps you can persuade your buyer to pay in sterling into your UK account, though i doubt they would agree to this  .
hope this helps. |