Below you will find the most popular questions asked by my clients about Property. Simply click on the question which applies to you and you will be taken directly to the answer.
1. Do I have to pay UK Capital Gains Tax (CGT) if I sell my property while living abroad?
2. When do I have to report a capital gain to HMRC when I sell a UK property?
3. Can I get a UK mortgage while living overseas?
4. How can I safely transfer large sums of money internationally for a property purchase?
1. Do I have to pay UK Capital Gains Tax (CGT) if I sell my property while living abroad?
Yes, you do.
Non-residents must report the sale or disposal of UK property to HMRC within 60 days of completion and any CGT due must be paid within the same period.
If the property was purchased prior to 6th April 2015, and you have been living overseas since prior to that date, you should be able to rebase your purchase price to the value at that date.
Guide to CGT rules for UK expat property owners
Get in touch
If you want to get a handle on your property options, please get in touch for a free no-obligation 20-minute call.
During the call, you will get:
- Answers to your basic questions.
- Informal guidance on the options available to you.
- An overview of any services needed to get your expat financial affairs in order.
2. When do I have to report a capital gain to HMRC when I sell a UK property?
Within 60 days of completion.
Get in touch
If you want to get a handle on your property options, please get in touch for a free no-obligation 20-minute call.
During the call, you will get:
- Answers to your basic questions.
- Informal guidance on the options available to you.
- An overview of any services needed to get your expat financial affairs in order.
3. Can I get a UK mortgage while living overseas?
Yes, it is possible to get a UK mortgage while living overseas, but there are several factors to consider:
- Specialist Lenders: Many high street banks might not offer mortgages to non-residents, so you might need to approach specialist lenders who cater to expatriates.
- Proof of Income: Lenders will require proof of income, and this can be more complex if your income is from a foreign country. You may need to provide additional documentation, such as tax returns, pay slips, and bank statements.
- Credit History: Your credit history in the UK, or lack thereof, can be a significant factor. Lenders will typically check your UK credit history, so maintaining some financial footprint in the UK can be beneficial.
- Deposit Requirements: You might need a larger deposit compared to residents. Deposits can range from 20% to 40% of the property value.
- Currency Risk: If your income is in a foreign currency, lenders might factor in the exchange rate risk. Some lenders may prefer you to have an income in pounds sterling.
- Mortgage Type: Consider the type of mortgage you’re applying for. Buy-to-let mortgages might have different requirements and terms compared to residential mortgages.
- Legal and Tax Considerations: Ensure you’re aware of the legal and tax implications of buying property in the UK while living abroad. Consulting with an adviser who specialises in international property transactions is advisable.
- Mortgage Broker: Working with a mortgage broker who has experience with international clients can be extremely helpful. They can guide you through the process and connect you with suitable lenders.
- Property Management: If you are buying to let, you will need to register with HM Revenue & Customs (HMRC) under the Non-Resident Landlord Scheme (NRLS).
Get in touch
If you want to get a handle on your property options, please get in touch for a free no-obligation 20-minute call.
During the call, you will get:
- Answers to your basic questions.
- Informal guidance on the options available to you.
- An overview of any services needed to get your expat financial affairs in order.
4. How can I safely transfer large sums of money internationally for a property purchase?
Transferring large sums of money internationally for property purchases requires careful planning to ensure safety, compliance with regulations, and cost-effectiveness.
Here are some factors to consider:
- Use Reputable Banks or Financial Institutions
- Choose Established Banks: Opt for well-known banks or financial institutions with a solid reputation for handling international transfers.
- Foreign Exchange Services: Some banks offer specialised foreign exchange services for large transactions, which might provide better rates and reduced fees.
- Currency Exchange Specialists
- Foreign Exchange Brokers: Consider using foreign exchange brokers who specialise in international money transfers. They often provide better exchange rates and lower fees than traditional banks.
- Regulated Firms: Ensure the broker is regulated by a financial authority such as the Financial Conduct Authority (FCA) in the UK.
- Secure Transfer Methods
- SWIFT Transfers: Use the SWIFT system for international bank transfers. It is a secure and widely used network for transferring money between banks globally.
- Two-Factor Authentication: Ensure that the transfer service offers two-factor authentication for added security.
- Check Exchange Rates and Fees
- Compare Rates: Compare exchange rates and fees from different providers to get the best deal.
- Fixed Rates: Some providers offer the option to lock in an exchange rate for a period, which can protect against fluctuations.
- Legal and Compliance Considerations
- Regulatory Requirements: Ensure compliance with the regulatory requirements of both the sending and receiving countries.
- Documentation: Keep all relevant documentation, such as proof of funds, source of income, and the purpose of the transfer, as this might be required by banks or authorities.
- Large Transfer Limits and Processing Times
- Daily Limits: Be aware of any daily transfer limits imposed by your bank or transfer service.
- Processing Times: Plan for the processing time of international transfers, which can range from a few hours to several days.
- Avoiding Scams
- Verify Recipient Details: Double-check the recipient’s bank details to avoid mistakes.
- Avoid Phishing Scams: Be cautious of phishing scams and ensure you are communicating with legitimate representatives of the financial institutions.
- Use Escrow Services
- Escrow Accounts: For property purchases, consider using an escrow service. The money is held in a third-party account until all conditions of the sale are met, providing security for both parties.
- Seek Professional Advice
- Financial Advisers: Consult with a financial adviser who has experience with international transactions.
- Legal Advice: Obtain legal advice to understand any tax implications and ensure all legal requirements are met.
- Transfer Timing
- Market Conditions: Timing your transfer according to favourable market conditions can result in significant savings. Consult with your financial adviser or broker for the best timing.
Get in touch
If you want to get a handle on your property options, please get in touch for a free no-obligation 20-minute call.
During the call, you will get:
- Answers to your basic questions.
- Informal guidance on the options available to you.
- An overview of any services needed to get your expat financial affairs in order.
