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TonyTax, Tax Consultant
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am an expat living and working abroad for the last 21

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I am an ex***** *****ving and working abroad for the last 21 years. I am non UK resident. I have my own home where I am currently living,
Please clarify the following:
1) I am in the process of buying my first property (flat) in the UK with my own finance which I will be using as holiday home . it will be vacant most of the time . Will there be any tax on this property apart from the stamp duty.
2) I also planning to buy a second property in the UK ( House) with a bank finance buy to let. What kind of taxes I will be liable to and how much.
3) How much is the stamp duty for value of of properties worth GBP 275,000 and GBP 650,000 respectively.
3) In the case No 2 above , will I be liable for any income tax from working abroad?
4) Income tax on renting the property while living abroad . How much and how is calculated.


1 Not unless you let it out.

2 You will need to register as a non-resident landlord which you can read about here. The first £11,000 of your rental profit will be covered by the personal allowance and you will pay tax at the rates set out in 1 here.

3 Use the calculator here. If the first purchase was the £275,000 property, the stamp duty would be £3,750. The second property's stamp duty will be subject to a 3% surcharge and on £650,000 the charge would be £42,000. The stamp duty rates are here.

4 So long as you maintain your non-UK resident status, you will only pay UK tax on your rental income, not your foreign earnings. Take a look at RDR3 on the Statutory Residence Test here.

5 Take a look here for details of letting expenses you can offset against the rental income. See 2 above for tax rate information.

I hope this helps but let me know if you have any further questions.

The stamp duty calculator link is here.

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