More than one property in europe

Cakeguts

They will find out. Properties in Europe also have property taxes that have to be paid. Money moves around. Eventually someone will notice that taxes are being paid in Belgium. So for the purposes of stamp duty the Belgium property is the first property and the UK one the second property. The second property in the UK will mean that the higher rate of stamp duty will have to be paid when you buy it.

G_M

fitzwells wrote: »

This is not from a stamp duty perspective and I certainly don't want to do anything fraudulent. I simply want to know whether, buying my only property in the UK, I am right in saying that this is not a second property, because being British, I want to have a property in the UK, and want to make sure that I have stated the right thing whilst not incurring unnecessary expense (by declaring it as a second property).

This post makes no sense.

If "This is not from a stamp duty perspective", then what '"unnecessary expense" are you thinking of?

As others have said, definition of "2nd property" depends whether it is being assessed by
* HMRC
* a mortgage lender
* a help to buy ISA provider
etc

fitzwells

It does make sense if you are aware of the taxation possibilities, having more than one property can (and this is what I want to establish) make you liable to higher taxation in general, but obviously you don't know.

davidmcn

fitzwells wrote: »

It does make sense if you are aware of the taxation possibilities, having more than one property can (and this is what I want to establish) make you liable to higher taxation in general, but obviously you don't know.

You'll need to be less vague about what tax rules you're talking about if you want useful advice from us.

Alarae

One question to ask:

At the end of the day, will you have interests in more than one property, either in the UK or abroad AND you are not selling your main residence?

Yes? Looks like you have two properties. Have fun with the additional 3% SDLT.

As mentioned before, this country is self assessment. If you knowingly hide your second property and HMRC find out down the line you are going to regret it with the interest and penalties they will levy. For a lot of long term cases, interest and penalties is more than the initial tax. I have had clients found out 5 years down the line. Some 10-15 as HMRC has access to more and more data.

Unless you are selling a main residence to occupy this new UK property you will be caught.

G_M

fitzwells wrote: »

It does make sense if you are aware of the taxation possibilities, having more than one property can (and this is what I want to establish) make you liable to higher taxation in general, but obviously you don't know.

Ah! OK.

But if you know (whilst I don't), then why are you asking?

Surely you should be telling us the answer.....?

Cakeguts

You would have to pay the property taxes for each property in the country that they are in. You only pay income tax in Belgium if you have income from there. If you live and work in the UK you will pay income tax in the UK. If you let the property in Belgium you will pay tax there on the rent. If you let the property in the UK you will pay tax in the UK. You may be able to offset your Belgium tax against your UK tax. However you will only know this by finding out what the rules are between UK and Belgium tax authorities.

Thrugelmir

fitzwells wrote: »

I own a property in Belgium and wonder whether buying a flat in the UK can be considered in UK law as possessing one or two properties... In other words since the flat is the only one I possess in the UK can it be considered as my main (and therefore single) residence from the legal point of view?

Is the property in Belgium let?