transferring a property to someone overseas questions

earlycomputers

I want to transfer ownership of a flat (not my principal home) to someone who lives overseas. There is no mortgage on the property and value of the property is under £125K. My questions are:
- Are there any restrictions on this as the new owner lives overseas (dual nationality British & Australian) but the property is in the UK?
- Can I easily do this transfer myself online on the .gov site or would I need a solicitor? Basically is this a straightforward process?
- For the property ownership to take place does the Land Registry etc need to see or finalise any tax stuff that might have arisen from renting the property out in the past? Or is rental tax stuff completely separate?
many thanks

[Deleted User]

earlycomputers said:

I want to transfer ownership of a flat (not my principal home) to someone who lives overseas. There is no mortgage on the property and value of the property is under £125K. My questions are:
- Are there any restrictions on this as the new owner lives overseas (dual nationality British & Australian) but the property is in the UK?
- Can I easily do this transfer myself online on the .gov site or would I need a solicitor? Basically is this a straightforward process?
- For the property ownership to take place does the Land Registry etc need to see or finalise any tax stuff that might have arisen from renting the property out in the past? Or is rental tax stuff completely separate?
many thanks

Plenty of property owners live overseas, myself included.

You can complete form TR1 without using a solicitor.
https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1/guidance-completing-form-tr1-for-the-transfer-of-registered-property

The Land Registry will not need to see any "tax stuff" but you will need to declare your Capital Gains to HMRC within 30 days.  

earlycomputers

thanks - what do I need to claim re Capital Gains and which site/dept do I contact in HMRC for this? Are you also saying that if the new owner lives overseas they or I dont need to do anything differently to if they lived in the UK then? thanks

davidmcn

The fact they're overseas doesn't change anything.

macman

You do your own calculation of the capital gain made and submit it to HMRC along with supporting calculations. The CGT due must then be paid within 30 days of completion. 
There is a dedicated microsite on .gov.uk for gains on disposal of UK property.
The fact that the new owner is domiciled overseas is irrelevant: the tax is levied on you, as you are the one making the disposal and the gain.

earlycomputers

Great many thanks. Sorry - another question - what if the reverse were to happen - same situation but the property owner who lives overseas wants to transfer a UK property to someone who lives in the UK? Would the overseas owner use the same Land Registry forms/be the same process? thanks

oldbikebloke

earlycomputers said:

Great many thanks. Sorry - another question - what if the reverse were to happen - same situation but the property owner who lives overseas wants to transfer a UK property to someone who lives in the UK? Would the overseas owner use the same Land Registry forms/be the same process? thanks

why ask hypothetical questions you can look up factual answers to yourself ? 

one look at the LR registry form shows it covers those with an overseas address
Registering land or property with HM Land Registry: Transfer ownership of your property - GOV.UK (www.gov.uk)

a search engine finds the rest:
Tell HMRC about Capital Gains Tax on UK property or land if you’re non-resident - GOV.UK (www.gov.uk)

davidmcn

earlycomputers said:

Great many thanks. Sorry - another question - what if the reverse were to happen - same situation but the property owner who lives overseas wants to transfer a UK property to someone who lives in the UK? Would the overseas owner use the same Land Registry forms/be the same process? thanks

The Land Registry works in exactly the same way no matter where in the universe any of the parties are located.