Complicated?

Kittyb14

my son and his American wife are looking to buy a house shared ownership. She has been in uk in spouse visa since start of the year. Between them they earn just under 80k so have been told they qualify for the house they want to buy up to 70% BUT my daughter in law worked remotely in us before coming to uk and has continued to do so albeit odd hours due to time difference. She is currently paid in $$. The finance guy said they pass all requirements except she would be automatically denied as she doesn’t pay uk tax.   Is this right? 

DE_612183

Sounds like she is employed in the US - regardless of the actual location of her laptop - for instance I was away for a month last year and worked from a number of different countries, but was ultimately UK Tax Based. I assume your DiL is US based for tax.

It's really up to the mortgage company IF they want to lend - many will not - if the finance guy ( who is this? from the Estate agency? ) doesn't know then you should probably approach a specialist mortgage broker - if you google non-resident mortgage brokers some should come up.

BoGoF

DE_612183 said:

Sounds like she is employed in the US - regardless of the actual location of her laptop - for instance I was away for a month last year and worked from a number of different countries, but was ultimately UK Tax Based. I assume your DiL is US based for tax.

If you are resident in the UK then you are liable to UK tax on foreign earnings - regardless of it already being taxed in the US.

ACG

I cant comment on shared ownership as I do not do them but there are some potential options:
1) Is her income needed? If not, she could still go on the mortgage, but just put her income down as zero. 
2) Some lenders will accept foreign income - I dont know whether or not Shared ownership have restrictions though. 

penners324

Sounds like they need tax advise.

She needs to be on a paye account thus paying UK tax.

There are a lot of banks and mortgage companies that won't go near a US citizen due to FATCA reporting requirements as well.

MWT

BoGoF said:

DE_612183 said:

Sounds like she is employed in the US - regardless of the actual location of her laptop - for instance I was away for a month last year and worked from a number of different countries, but was ultimately UK Tax Based. I assume your DiL is US based for tax.

If you are resident in the UK then you are liable to UK tax on foreign earnings - regardless of it already being taxed in the US.

Fortunately there is a double-tax treaty in place, but she should still be declaring her earnings in the UK if she has been in the UK long enough in the current tax year, which she may not have if it is only from the start of this calendar year...

Hoenir

Kittyb14 said:

 BUT my daughter in law worked remotely in us before coming to uk and has continued to do so albeit odd hours due to time difference. 

Although not possibly particular relevant. Not entirely clear what her work status is and is likely to be in the future. Time differences can be hard to navigate and pose insurmountable logistical challenges.