My brothers and I own two rental properties in the UK. I am a resident of Canada and my brothers reside in the UK.
We manage the properties ourselves and pay personal tax on income less expenses.
Recently it has come to our attention that it might be a sensible idea to form a company. We understand that the rents would be paid into the company, expenses taken from the company account, and we could receive an amount every year based on the amount earned. We understand that the company would pay tax at a lower rate than the individuals (my two brothers and me), and that we would pay personal tax on the amount we draw over and above the tax that has already been paid on that amount.
I am sure that this is grossly oversimplified. Does this sound reasonable, bearing in mind that I am resident in a foreign country?
Thank you.
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