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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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As a British non resident, i want to buy a property in the

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as a British non resident, i want to buy a property in the UK. what is the best way to do this. i presently spend less than 45 days in the country. my children live with their mother in a home that is in her name and this property is in the UK.
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
Hello,A private use property will not be subject to any taxes on income in the UK while the owners remain non-resident for UK tax purposes. On the other hand, any profits derived from UK rental receipts are taxable in the UK in all cases.An overseas landlord is required to register with HMRC under the Non-Resident Landlord Scheme. If you use a non-UK company to purchase, it eliminates exposure to UK inheritance tax (IHT). If you are not going to be using the property yourself then you may wish to purchase through corporate structuring with a NON UK company. If you intend to use as personal the individual purchase would be fine.
Customer: replied 1 year ago.
thanks.some follow up question:
1. as a non resident British expat, i intend to transfer money to the UK to purchase the property in my own name. this will be used by the family that are resident here. does this change anything.do you engage separately i.e. can we speak and see if i can engage you for a more detailed discussion?
Expert:  TaxRobin replied 1 year ago.
The property purchased in your own name would not be a taxable event. It is what you do with the property that could make you liable for tax.
Customer: replied 1 year ago.
thanks, ***** ***** i were to buy a second property in my name as well - is it the same case i.e. until i sell or rent it out there is no to tax event or trigger....
Expert:  TaxRobin replied 1 year ago.
That is correct
Customer: replied 1 year ago.
ok, re the second property, it has a parcel of land that has potential for a new house to be erected. which i then intend to sell. would you suggest i purchase the second property through a company to be set up in the UK....
Expert:  TaxRobin replied 1 year ago.
In either case (individual or company) the tax will be owed when the sale occurs. This will be so even if the company is in the UK or outside the UK.
Customer: replied 1 year ago.
is it not a lower tax rate?
Expert:  TaxRobin replied 1 year ago.
It will be a lower rate for a company set up to deal in real property, yes. The cost to set up and administer the company as well as your resident country tax would need to be factored in to any equation though to see if this structure is really more tax efficient. (Something outside the scope of our interaction)
TaxRobin and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
thanks.
Expert:  TaxRobin replied 1 year ago.
You are most welcome.Best wishes in your venture.

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