Question:
I am an Isle of Man resident (entering 5th year) but I am paying 40% tax to the UK on UK rental income. Also my shares registered to me here on IOM are being included for UK tax. Is there any sensible action I can take to reduce this tax charge?
Arthur Weller Replies:
A non UK resident pays regular UK tax rates on UK source rental income. You have a personal allowance, then pay 20%, then 40% income tax. So if you have a lot of UK source rental income it is quite possible for you to pay 40% UK income tax. A non UK limited company however only pays basic rate UK income tax on its UK source rental income.
