What are the tax implications for overseas buyers investing in UK property?

Stamp duty land tax (SDLT)

Any non-resident who purchases a property in the UK will be subject to both the standard stamp duty land tax rates, as well as an additional 2% surcharge. Click this link to see the most up-to-date SDLT rates. 

Inheritance tax

Non-UK residents who purchase a property in the UK will be subject to inheritance tax. On death, 40% inheritance tax is levied on the value of all UK situated assets for non-UK domiciled individual’s.

ATED

ATED is a yearly tax payable by companies that own residential property with a value of more than £500,000 in the UK. For the most up to date ATED rates, visit this link.

Capital gains tax

Capital gains tax is a tax on the profit realised on the sale of a non-inventory asset and is required by both UK and non-UK residents upon the disposal of residential property in the UK. Visit this link for the most up to date rates.

Income tax

Any rental income you earn on your UK investment property will be subject to income tax. This can be paid in two ways – either earn your income in full and then pay tax through a self-assessment tax return or allow your lettings agent or tenant to deduct the tax automatically. For up to date income tax rates, visit here.