Considering incorporation, what are the current corporation tax rates for a property company, and how does this compare to paying income tax personally on rental profits of £40,000, factoring in dividend tax?
Quick Answer
For rental profits of £40,000, a property company pays 19% Corporation Tax, while personal ownership involves income tax (plus National Insurance) and then dividend tax if drawing profits, generally favouring incorporation for higher-rate taxpayers.
About This Topic
Compare UK Corporation Tax (19%-25%) on property profits with personal income tax and dividend tax for a £40k rental income. Understand tax efficiency.
This question is part of our Tax & Accounting category, providing expert guidance on UK property investment.
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