Foreign National tax implications
1:31 PM, 2nd March 2017, 9 years ago
3
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I am a British National with a small Buy to Let portfolio. I am married to an Egyptian national, who has no residency in UK, though is a regular visitor.
He is therefore not a UK tax payer and has no UK income.
My UK income is only from the BTL’s. If he buys a property in his sole name (for cash), what are the tax implications when he sells it?
He’s thinking to buy at auction and resell withing a few months, one property at a time…..
Thanks for any advice
Sheridan
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Member Since January 2011 - Comments: 12193 - Articles: 1396
1:57 PM, 2nd March 2017, About 9 years ago
Hi Sheridan
As a non-resident your husband would still have to declare and pay CGT within 30 days of the completion of sale.
He would also pay witholding tax of 20% of gross rent.
However, with careful planning there are opportunities to restructure your property holdings in order to utilise both of your nil rate band tax allowances. This could save you a considerable amount of tax.
You may also be aware that if your net profits and mortgage interest combined exceed £43,000 a year you will also pay an additional tax levy on your mortgage interest. However, by splitting the beneficial ownership between the two of you, it is possible to double your allowances.
On sale of the properties you could then also both utilise you annual CGT exemption allowances.
Please see >>> https://www.property118.com/optimal-tax-planning/91857/
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Member Since October 2015 - Comments: 3
2:47 PM, 3rd March 2017, About 9 years ago
Thanks Mark. I guess since he doesn’t have residency, he cannot have a PPR in UK and hence avoid CGT?
Member Since January 2011 - Comments: 12193 - Articles: 1396
2:56 PM, 3rd March 2017, About 9 years ago
Reply to the comment left by “Sheridan James” at “03/03/2017 – 14:47“:
Correct
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