UK Property Tax for Non-Resident Landlords and Investors
Whether you own a single buy-to-let or a portfolio of UK properties, we ensure your tax position is optimised and your obligations to HMRC are fully met.
UK property is subject to UK tax regardless of where the owner lives. As a non-resident landlord, you must report rental income to HMRC and may be subject to capital gains tax on disposal. Navigating the Non-Resident Landlord Scheme (NRLS), allowable expenses, and ownership structures requires specialist knowledge.
The Non-Resident Landlord Scheme (NRLS)
If you are a non-UK-resident landlord receiving UK rental income, your letting agent or tenant is required to deduct basic rate income tax (20%) from rental payments unless HMRC has authorised you to receive rent gross. We can apply for gross payment status on your behalf and ensure you are completing the correct UK tax returns each year.
Capital Gains Tax on UK Residential Property
Non-residents selling UK residential property must report any gain to HMRC within 60 days of completion and pay the applicable CGT. The CGT rate for residential property is 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers (as of April 2024). The principal private residence relief is available where you have lived in the property, subject to conditions.
Property Ownership Structures
The way you hold UK property (personally, through a limited company, a partnership, or an offshore structure) has significant tax implications. We review your existing structure and advise on the most tax-efficient approach, taking into account stamp duty land tax (SDLT), income tax, capital gains, and inheritance tax considerations.
Companies Holding UK Residential Property: ATED, SDLT and De-enveloping
Holding UK residential property through a company or other structure brings its own regime, and it is rarely neutral. Where a company or other non-natural person owns UK residential property above a value threshold, an annual ATED (Annual Tax on Enveloped Dwellings) charge can apply, with a return due each year even where a relief removes the charge itself. Buying UK residential property through a company can also trigger a punitive flat rate of SDLT, and the recent changes to how enveloped UK residential property is treated for inheritance tax have prompted many owners to reconsider the structure altogether. De-enveloping, unwinding the company and moving the property into personal hands, is sometimes the right answer, but it carries its own SDLT, capital gains and inheritance tax consequences and must be modelled carefully before anything is done. We review existing structures, weigh the real cost of staying enveloped against unwinding, and handle the annual ATED returns and reliefs.
Frequently Asked Questions
Ready to take control of your UK tax position?
Book a one-to-one consultation with our specialist team. We provide clear, personalised advice, wherever you are in the world.