Dear All,
I am seeking your help. I am British born, but lived abroad for circa 45 years, and returned to the UK 5 years ago.
Whilst I was abroad, I invested in a company as an angel investor. I own 50% of the company (as per registered in the respective country) and it is based in Latin America, but I have no involvement in the running or day to day management of the company. The company simply owns the land and has a few assets on the land.
I then subsequently made a private arrangement with a friend of mine to give him 25% of the company (this was agreed with other shareholders). However, this is not reflected in the company in Latin America as he is was never resident there.
The company has now signed a deal to (a) rent out the land for x years (b) rent the assets on the land for x years. Over the X years this rent will be paid to shareholders.
So illustrative purposes...
- My Initial Investment was £100
- Dividend/Rent/Gain is £30.... so it will take around 3+ years to return my investment before a gain is made.
Question How should I deal with the funds coming in? Is this income? Is this Investment return?
Question How should I deal with the payment to my friend? I will receive the monies as per my official ownership of the company (50%) and I need to pay my friend...? How can we avoid paying tax when the money is received to me... and then he pays tax on it again....
Kind regards
A.
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