Expats Guide to Investing In UK Property
Last updated 19/04/2019
From simply renting out your existing UK property to investing in the rapidly growing multi-investor project marketplace, expats have a diverse range of property investment options available to them. While the taxation changes that take effect in April of this year (2019) need to be considered, UK property continues to provide a very worthwhile return on investment for those living outside the country.
Making the most of your UK property investment through due diligence
Online resources such as the official UK government website provide detailed tax information for expats along with many other useful sources. It is always prudent to take expert advice concerning any investment you are considering as there could be tax implications even if you are no longer residing within the UK.
Being aware of some recent taxation rules changes
Following proposals announced it the UK budget of 2017, there are certain changes in the tax rules governing individuals and companies that invest in UK property. These changes will become “live” from April of 2019 and a further change that effects “property rich” non-UK companies will also come into effect in April of 2020.
So what does it mean for expats who are considering UK property investment?
According to Global accounting experts KPMG, the main area of change is that after the new rules come into effect in April 2019, non UK residents will no longer enjoy the previous benefits of capital gains exemption. The reality of this will be that profits realised on the sale of UK property will attract capital gains tax at its current rate at the time of a sale. This is, therefore, a crucial factor for expat investors to consider when planning any exit strategies concerning their property portfolios.
The benefits of a UK company in property ownership
By becoming an investor with or a shareholder in one of the non UK companies, many expat investors have been able to avoid corporate taxation of their rental profits in the past. From 2020, however, this loophole will also be closed and overseas investors are urged to review their tax planning and maybe their exit strategies too.
The importance of planning ahead
Through discussing your requirements with an expert team that unites developers, expat property investors, and lending sources, you will be better placed to plan your UK investment strategy. From the optimum exit window to the time span of your investment, they can all work together for a most favourable outcome whether you reside within the UK or further afield.
Part of a continuing market trend
The UK real estate market continues to perform well, so much, in fact, that the official government website has considered it necessary to provide detailed information on foreign investment in UK property. The statistics on the site speak for themselves and offer an encouraging picture of exactly how attractive UK residential construction projects are to global speculators.