I have investments in hotel rooms which pay me a yearly rental amount. Last year, instead of making the payment directly to me, the company reinvested the amount so that I could purchase a new room for rental. So, no money changed hands. Do I need to declare the reinvestment amount for UK tax purposes just as if I had received the funds directly?
Arthur Weller replies:
Yes, you do. You chose to immediately reinvest, and so you did not actually receive the cash, (you could have chosen to do anything with the incoming profits), but this does not take away from the fact that you made a rental profit.