This article is designed to be a brief guide to the taxes that apply to UK property, all in one place. This is written for the benefit of non-residents of the UK.
There are various taxes that apply with in relation to the ownership of UK property and an overview of each of the main ones is set out below.
I have covered this topic previously but it is time for an update as various rules have changed over the past few years.
When a new Prime Minister takes office, it is usual for them to want to put their own stamp on things and Liz Truss and her team are doing just that. Kwasi Kwarteng, the current Chancellor of the Exchequer, has made a few announcements today, a mini-budget if you will, or an oddly named ‘fiscal event’ according to the government.
As has been the case in recent years, many measures have already been announced or deliberately leaked so this was largely about clarification.
This article is a brief overview of some of the main points with particular reference to any changes that have relevance to those living outside of the UK and especially in the GCC. The UK press will cover many points in detail but many of the points will not be directly relevant to expats so this article focuses on the points that will be most relevant to us.
EDIT. As this mini-budget went down so poorly, and did such dmanage to UK financial markets, Kwazi Kwateng was replaced by Jeremy Hunt and many of the announcements have since been rescinded so I have commented under each section to clarify. Added comments are in italics.
Yes, such a thing is available and it is something very different to the usual apartments on offer. I have a new investment for clients with yields of over 10% per annum.
In an uncertain world, it is understandable that we have seen an increase in property as an investment class. People have always liked investments that they fully understand, or can see and touch. Property markets are not equal and the legalities and potential for growth and/or income vary hugely but Europe still presents many opportunities for long-term investment and yield.
Recent surveys have shown that many expats are keen to invest in property in their home country either as they consider it a more secure place than where they are currently living or as a potential base should they need to move back.
The recent upheavals in work, schooling, lifestyle and more has made many reflect on the lives that they want to lead, and to consider future plans. Initially, I saw an uplift in enquiries for wills and life cover, and while these are still popular, I am now being contacted by people about property investment in the UK and Germany. Fortunately, I can assist with both and you can invest without leaving home.
Breaking news.
It has been announced that the UK Government will shortly be issuing a new consultation document in which it will propose that the rate of Stamp Duty, the tax payable on purchase of a property, will increase further for non-residents who buy in England and Northern Ireland.
This article has been rewritten and fully updated so please refer to the lastest one, published on 31st July 2024.
Thank you