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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Property Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Hello,We are at present live in UK on Valid Tier 1 VISA(

Customer Question

Hello, We are at present live in UK on Valid Tier 1 VISA( HSMP Visa). We are eligibale for ILR after Jan 2015. We intend to buy a flat in UK and stay in there for 2 more years. After that we might return back to my nationality country India. My Query is: 1. Can I buy a property with out taking UK Nationality? 2. After leaving UK, 2a .If I rent the property, what is the % of tax on my rental income? 2b. After leaving UK, if I rent the property, I lose validity of my ILR, what is the % of tax on my rental income? 2c. After leaving UK, can I sell my property by visiting UK 10 years later? What are the Tax implication for that sale of the house? 3. If I keep my ILR valid, 3a .If I rent the property, what is the % of tax on my rental income? 3b. After leaving UK, if I rent the property, I lose validity of my ILR, what is the % of tax on my rental income? 3c. After leaving UK, can I sell my property by visiting UK 10 years later? What are the Tax implication for that sale of the house?

What other issues should we consider while buying flat for our scenario?

Thanks, Pankaj

Submitted: 2 years ago.
Category: Property Law
Expert:  UKSolicitorJA replied 2 years ago.
Hello Pankaj,
Are you buying the property outright or with a mortgage?
Customer: replied 2 years ago.

Hello,

We are looking for a property with Mortgage.

More over the mortgage range is upto 200,000. for 20 years

Pankaj

Expert:  UKSolicitorJA replied 2 years ago.
Thank you.
I would respond to your queries as follows
1 yes, you may buy a property in the UK without having UK nationality
2 your tax rate will depend on your tax residency status, if you are non resident in the UK for tax purposes, you will not have to pay any UK tax on the rental income. You may sell the property at any time.
3 ILR will not affect your tax rate, it depends on whether you are resident in the UK physically, having ILR or not is not relevant.
4 if you sell the property and are tax resident in the UK, you will have to pay capital gains tax on any gain in the value of the property. If you are not resident in the UK, you will not be liable to pay this tax.
The main thing is you obtaining a mortgage as a bank will not give you a mortgage if you will not be living in the UK.
May I help further?
UKSolicitorJA and other Property Law Specialists are ready to help you
Customer: replied 2 years ago.


Hi,


 


Just want to ask 1 more sub question on my earlier query.


 


If we take ILR now, and then due to some conditions need to leave UK and could not return to UK for 4-5 years. It will cause the expiry of my ILR.


 


In that situation, can I sell the property by coming in UK on visitor VISA?


 


Are the Tax implecations different in that case? Will I be able to use my existing UTR, NI number for that transaction?


 


Or will I need to pay Tax in my country after money transfer there?


 


 


Pankaj

Expert:  UKSolicitorJA replied 2 years ago.
Hello Pankaj,

You may come back and sell your property on a visitor visa.

You need to ask a local tax expert in your country for further advice on the tax issue.

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