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Japan tax on UK property when purchased via a company
Posted: Tue Mar 30, 2021 11:26 am
by SARS
Just wondering if anyone here has experience with purchasing UK property via a company and filing Japan taxes?
If I buy another property as an individual then my income in the UK will fall into the higher rate tax bracket. On the other hand, the ability to deduct stamp duty from my Japan taxes is very attractive. For 2020 I have a decent tax refund as I bought a property last year.
The ideal would be to buy the next one through a UK company and somehow still receive the stamp duty benefit.
Has anyone done or looked into this and happy to share their experiences?
Re: Japan tax on UK property when purchased via a company
Posted: Tue Mar 30, 2021 1:29 pm
by Wales4rugbyWC23
SARS wrote: ↑Tue Mar 30, 2021 11:26 am
Just wondering if anyone here has experience with purchasing UK property via a company and filing Japan taxes?
If I buy another property as an individual then my income in the UK will fall into the higher rate tax bracket. On the other hand, the ability to deduct stamp duty from my Japan taxes is very attractive. For 2020 I have a decent tax refund as I bought a property last year.
The ideal would be to buy the next one through a UK company and somehow still receive the stamp duty benefit.
Has anyone done or looked into this and happy to share their experiences?
I am going through the process now with my Japanese accountant now. However, I bought a flat in December 2020 and I haven't done a UK tax return for that rental income yet, so my accountant said she will put it through in this coming tax year, when she gets my British tax return. I paid about 8000 pounds stamp duty.
As for your question about being a company or buying the house a private individual I don't think it makes that much of a difference. According to this stamp duty calculator you would pay the same amount of stamp duty whatever your status is.
https://www.benhams.com/calculator/stamp-duty/
Re: Japan tax on UK property when purchased via a company
Posted: Tue Mar 30, 2021 1:37 pm
by SARS
Thanks. I think my question is a little different though.
This year I purchased a property as an individual and so can deduct the stamp duty from my Japanese income.
However, if I purchase a property via a company then presumably the company (which I will own outright) pays the stamp duty and not me. In this case, can I deduct the stamp duty from my Japanese income?