Have Tax Questions? Ask a Tax Expert for Answers ASAP
I am an advisor at JA and happy to assist you.
Could you please provide more details about your query.
Yes, i am based in UK. So its my interview time, i am not looking for a job ;)
i don't do phone calls anymore as i don't find them cost effective
Please ask your question here and i'll answer it
If you buy the property as individual and rent it then you'll pay income tax on profits on annual basis.
CGT is only applicable when you dispose off the asset so its too early to think about it.
I hope this answers the query.
20% income tax.
you need to pay Stamp duty when buying the property.
Im sam one of the Uk tax experts and also ex HMRC (UK tax ofice) and have ny own accountancy business
So you will pay stamp duty on purchase long with other legal fees for searches (makes sure that the ground is safe and there are no plans to build roads etc through the property (These are charged by the lender as part of the borrowing review of money they are to lend you)
then after you have the purchase made and decide to rent it out you have4 to register for the non resident landlord scheme so you can have your rents paid to you WITHOUT any deduction of tax initially and must register with HMRC that you will be receiving UK rental income. You then complete an annual tax returns declaring the rental income and expenses and pay tax on the balance at 20%
Non resident landlord scheme here https://www.gov.uk/government/publications/non-resident-landlord-application-to-have-uk-rental-income-without-deduction-of-uk-tax-individuals-nrl1
Registering for self assessment with HMRC (UK tax office) https://www.gov.uk/tax-uk-income-live-abroad/rent
At the end of every UK tax year (5th April) you then complete the tax return to be with HMRC by 31t Oct if filing a paper version or 31st Jan the following year (if filing online) any tax you owe also has to be paid no later than that 31st Jan
Then when you sell you must inform HMRC within 30 days of sale and pay capital gains tax - link here that expands on this https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-property
Do let me know if you have any questions
The only changes to stamp duty is when the purchase is under £500000 for first time buyers then its NIL Unless you own another property its 3%
If its over £500000 then stamp duty applies see link here for rates This all changes again from 06/04/2021