tax rate

[cbjohn]

I have a limited company that carries on a trade but also owns shares, uk property and overseas property. The trade profit has always been higher than the profits from everything else put together and I have been paying tax at the small companies rate. Last year to 31/12/10 this changed, profit from trade was only £400, whilst uk property profit is about £12000. Overseas property breaks even.

I expect trade profit to be low again this year but don't see why it will not increase next year as I will be putting more effort into the business.

I'm sitting on an unrealised £20K gain with the shares. With the UK property it's probably £80K unrealised gain, whist the overseas property has an unrealised loss of about £100K. I'm not sure if that's relevant or not. There have been no realised gains or losses for years.

I'm wondering whether I now need to pay the higher rate of tax. I'm late with my return but thought I would today pay some tax to HMRC to avoid any interest.

Any help appreciated.

[Incredulum]

I do not understand you. Who is paying the tax, and at what higher/lower rates and why?

[section 44]

I'm sitting on an unrealised £20K gain with the shares.

Do you mean that you are sitting on this unrealised gain or that your company is sitting on this unrealised gain?

I'm wondering whether I now need to pay the higher rate of tax.

You haven't referred to you having any profits/income, only that your company has.

Hence you need to differentiate between you and your company.