Dear Team,
I am a Hong Kong resident (where no CGT applies) and have been for many years. I am in the process of buying a property in UK jointly with two family members. The property will be in my name, with one of my family members acting as guarantor for a UK based buy-to-let mortgage. The property will be rented out at more that 100 pounds per week. I own no other property in the UK. I have no other income in the UK. My question is in several parts:
a) Upon sale of the property, (assuming there is a gain) is the CGT avoidable? (Is it necessary to wait 5 years after disposal before returning to the UK?)
b) Does income tax have to deducted at source by the agent/tenant, or can the interest on the mortgage be claimed against the rent because there is a UK mortgage.
c) Would an offshore trust or any other vehicle be a better way around either the Income Tax or CGT issue, assuming we intend to buy further properties in the future (before selling the first one).
d) I would also be obliged if anyone knows of a double taxation treaty between the UK and HK.
Thanks in advance for any advice on these matter.
Jack
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