Rish,


thanks for the advice, when i bought i was told that there would be a 1% clause in there incase there was any delays and as it was not in the contract when it came through the post, then i will ask for my payment terms to be changed...unless they deicde to include it for me...

otherwise what are the rest of the people doing with their apartments who have bought LHB? are you going to rent it out privately (a holidays lettings website etc etc) where you can get 500-1200/week, are most people taking the 8% scheme? or are people buying ti flip before its made to realise their investment growth?

i just want to learn what kinds of options there are and what other peoples thinking is?

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?

Hi, La Hoya bay is on Al Marjan Island in Ras Al Khaimah and is designed like the Dubai Palm. I am a Broker in RAK and also live here for a no of years where we can offer you investments in this area. You may contact me on theda@sacm.ae and by the way its really beautiful and on an unspoilt shoreline as well. We have other lucrative investments in close proximity of this area that you may also wish to consider. Thanks & Regards Theda

Hi contact me for the Northern Emirates investments all lucrative and direct from the Developers i can present comparatives as I have lived here for a no of years and we are Brokers for our investors or email me on theda@sacm.ae Thanks & Regards

In the prosses of buying into La Hoya Bay Residence..... Whats the story whith not using ESCROW..... Should i be concered or is the banking system in RAK secure.... First time buyer

im not too sure, but from what i understand you would have to pay 18% even if you dont bring the money back, because if you are a UK citizen you pay capital gains tax on your WORLDWIDE gains. best thing is to ring your tax office, thats what i did. am based in london.

What is the treatment of rental income. As UK citizens do we have to pay Income Tax on rental income even though it is left in Dubai?

Hi,

It works like this:

If you are UK resident and sell an investment property in Dubai (or anywhere else for that matter) - firstly, you must pay tax in the local country - however, in the case of Dubai / UAE, there is zero CGT so no problem. Secondly, you must pay tax in the UK at 18% (you have the allowance of course). This is irrespective of where the proceeds actually go - whether they stay in a Dubai account or are repatriated to the UK.

There is a way around this - get non-resident status (a whole new topic...) but this in essence requires you to spend most of your time outside the UK (I won't bore you with the details). If you gain non-resident status and sell, you will not pay CGT UNLESS you move back to the UK and take up UK residency within 5 full tax years. In such a case, the gain is viewed as having taken place in the year of return and you will be liable for CGT.

Example - you buy a property in May 2008 & sell April 2009 - if you were non-resident pre-sale (which is the important bit) you will pay tax if you go back to the UK before 5 full tax years have passed. So, if you conveniently became non-resident on 4th April 2009 (just before new tax year), you could move back on 6th April 2014 because 5 full tax years will have passed.

In answer to the other question about UAE rental income - this is liable at your income rate in the year it is earned if you are UK resident.

Hope that helps.

What a great looking project. I hope the quality will be high. This is the biggest risk when buying off-plan. Unknown finish levels. The location and site are however fantastic. I was there a couple of weeks ago and the area has some stunning developments going on. 3-4 years time this location will be prime.

thanks guys for your reply re taxes. What's the latest with LHB in term of prices. Is 1150 AED PSQ sounds good for a block E 5 floor area app 710 with seaview, on 20:20:60 plan. Its difficult to generalised but has the 20% incease since pre-launch materialised, has anyone made money from this. I hope it follows Plam Dubai but have some reseverations. What's the latest on RAK?