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Old 14.05.2021, 22:17
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Re: Investing in real estate in UK

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If you earn over about the EF base salary amount, they take it back.


"Income over 100,000. Your Personal Allowance goes down by 1 for every 2 that your adjusted net income is above 100,000."


Bastards.
If you have that problem as a non UK resident then I'm going to say maybe it's fair enough.

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PS. this results in paying 65% on that part of your income, IIRC
It's more like 60% but we get the idea.

Last edited by Landers; 15.05.2021 at 00:17.
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  #22  
Old 15.05.2021, 11:26
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Re: Investing in real estate in UK

There is no personal allowance for non UK residents. From the rent received you can deduct 1000 GBP and on the remaining you pay 20% tax
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  #23  
Old 15.05.2021, 11:54
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Re: Investing in real estate in UK

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If you have that problem as a non UK resident then I'm going to say maybe it's fair enough.
The person works in CH full time but returns to the UK at weekends to see his family so is dual resident & has to pay UK tax on his Swiss earnings.
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There is no personal allowance for non UK residents. From the rent received you can deduct 1000 GBP and on the remaining you pay 20% tax
Many people do , here is HMRC's link on the subject https://www.gov.uk/tax-uk-income-liv...onal-allowance
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Old 22.05.2021, 12:30
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Re: Investing in real estate in UK

Perfect now I should have a clear idea of the future steps. Thank you guys you were very helpful!

To summarise buying as a private should mean:

- UK income taxed in UK, but considering is inside the personal allowance (I am an EEA citizen) it should be tax free.
- I have to fill some forms to the HMRC like the self assessment, not sure if I also have to fill the form to get the full rent without tax deducted, likely yes.
- Stamp duty is 2% more for non UK residents, but in my case it is a student studio, exempt from it.
- Capital Gain tax will be paid just in UK.
- In Switzerland I have to declare the income that will not be directly taxed, but it will increase eventually my tax rate.
- In Switzerland I also declare the apartment value that will increase the wealth tax (same if the money would be in the bank).

It doesn't look to bad to me the situation to invest in UK from Switzerland, considering that real estates in Switzerland are way more expensive and less dynamic as a business.
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Old 22.05.2021, 14:08
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Re: Investing in real estate in UK

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- Stamp duty is 2% more for non UK residents, but in my case it is a student studio, exempt from it.
Unless there is some kind of other exemption for student properties I'm not aware of, don't count on that. Even though there is no stamp duty on properties under 175k, overseas buyers still pay 2%, companies 3%. Its not an uplift, it's a separate tax.

Kind regards


Ian
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  #26  
Old 22.05.2021, 14:25
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Re: Investing in real estate in UK

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There is no personal allowance for non UK residents. From the rent received you can deduct 1000 GBP and on the remaining you pay 20% tax
There indeed is - been claiming it for the past 20 years:

"Personal Allowance
You’ll get a Personal Allowance of tax-free UK income each year if any of the following apply:

you hold a British passport
you’re a citizen of a European Economic Area (EEA) country
you’ve worked for the UK government at any time during that tax year
You might also get it if it’s included in the double-taxation agreement between the UK and the country you live in." Double taxation Countries include Switzerland.

https://www.gov.uk/tax-uk-income-liv...onal-allowance

The UK has been a great investment place for overseas landlords. You could essentially have 2-3 properties split between a couple and pay zero taxes. Plus no CGT until 2017 and then now only the value after April 2017. You could claim mortgage interest until they started ratcheting this down the past 3 years and there was also a furnished 10% allowance until a few years back.

Last edited by CH_Me; 22.05.2021 at 15:21. Reason: snipped
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