As an overseas buyer, purchasing property in the UK may have tax implications both in the UK and in your home country. Here are some key tax considerations to keep in mind:
- Stamp Duty Land Tax (SDLT): SDLT is a tax on property purchases in the UK. As an overseas buyer, you will be subject to SDLT on your purchase, with rates varying depending on the property value. The rates are generally higher for overseas buyers than for UK residents.
- Non-Resident Capital Gains Tax (NRCGT): If you sell your UK property as an overseas buyer, you may be subject to NRCGT on any capital gains made. The rate of NRCGT is currently 28%, although this may vary depending on your individual circumstances.
- Inheritance Tax (IHT): IHT is a tax on the estate of a deceased person. If you own UK property as an overseas buyer, it may be subject to UK IHT if you pass away. The current rate of IHT is 40%.
- Income tax: If you rent out your UK property, you will be subject to UK income tax on any rental income earned.
- Double Taxation Agreements (DTAs): DTAs are agreements between the UK and other countries designed to prevent double taxation. As an overseas buyer, you should check if your country has a DTA with the UK to ensure you are not taxed twice on the same income or gains.
Overall, purchasing property in the UK as an overseas buyer may have tax implications in both the UK and your home country. It is important to seek professional tax advice to ensure you are fully aware of the tax implications and obligations associated with your purchase.
