Buying a house outright

grant2598

Hi,

I have just had an offer accepted on a flat. I am a British National living and working in Qatar, as I am self employed I was unable to get a mortgage. I have managed to save up enough money to buy a flat in the U.K. I will still be living overseas, so will be planning on renting out the property.

I am unaware about any taxes I may have to pay, or do I not have to pay them as I am living and working overseas. I have looked all over the web, but can not find a straight forward answer.

Regards
Grant

agrinnall

You'll need to pay Stamp Duty Land Tax on the property you purchase (if it's in England or Wales, similar things with different names in Scotland and NI), but other than that there shouldn't be anything.

https://www.gov.uk/stamp-duty-land-tax/overview

Once you have let the flat then you'll need to pay income tax on the profits, but that's a more complex subject so I'll let others suggest the best places to look. There are also a myriad of regulations that you will need to follow as a landlord, which I'm sure G_M will provide the links to.

00ec25

the rate of SDLT which you will need to pay depends on whether you already own any property anywhere in the world. If the UK flat will be the only property you own, then you'll pay the standard rate SDLT. If you already own a property anywhere then you'll pay the additional rate SDLT
https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

as a UK national you are entitled to the income tax personal allowance against any income you earn from within the UK. You will need to register with HMRC under the Non Resident Landlords scheme
https://www.gov.uk/tax-uk-income-live-abroad/rent

also note carefully that as an overseas based LL you must provide an address within the UK at which your tenant can contact you ("address for the serving of notices") otherwise the tenant has the legal right not to pay any rent to you at all. Obviously many people therefore choose to use a letting agency in that case, but you don't have to, it could be a friend or relative's address, it just has to be a UK one.

Read GM's various pages....
https://forums.moneysavingexpert.com/discussion/5180214

* Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new protection (2015)

* Deposits: payment, protection and return

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

G_M

* SDLT on the purchase. If you already own a property (anywhere) you'll pay an additional 3% 2nd property rate.

* Income tax on your rent

* Capital Gains Tax when you sell as it's not your main residence


See also:

* Tenancies in Eng/Wales: Guides for landlords and tenants This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

Topics covered:

* Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new protection (2015)

* Deposits: payment, protection and return

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

* Repossession: what if a LL's mortgage lender repossesses the property?

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?