UHY Hacker Young | Chartered Accountants

Overseas investors in UK property


From direct investment in ‘buy-to-let’ property, to complex commercial trading structures, at UHY Hacker Young, we have extensive experience in advising overseas investors in UK property.

Areas we specialise in

Our specialist team have assisted property investor clients over many years, from tax compliance to strategic planning. Some of the areas we specialise in are:

  • Non-resident landlord registration – currently, UK letting agents or tenants are required to withhold 20% tax from payments made to non-resident landlords. We can help with registration with the UK tax authorities to allow these payments to be received gross.
  • Preparation of UK tax returns and advice on deductibility of expenses – non-resident landlords are required to file UK tax returns if they wish to receive rental income gross. Filing a tax return also allows finance interest and expenses to be claimed. We can assist with the preparation of these tax returns and can also advise on which costs are allowable for tax purposes.
  • Completion of Annual Tax on Enveloped Dwellings (ATED) returns – generally, where UK residential property is owned through a corporate body a ATED charge may be due and a return will need to be filed with the UK tax authorities. Reliefs are available to reduce the charge, however an ATED return will still need to be filed. We can help clients to claim the appropriate reliefs and to file the ATED return.
  • Completion of Capital Gains Tax returns – non-UK residents are subject to Capital Gains Tax on the disposal of UK residential property. Disposals must be reported to HM Revenue & Customs within 30 days of the disposal, even if no tax is due. We can help with the filing of these returns and can advise on the taxes chargeable.
  • Advice on new and existing offshore holding structures – historically, UK property has been held tax-efficiently through trusts and offshore companies. However, changes to the legislation have meant that old structures may no longer be tax efficient, particularly for UK Inheritance Tax. It is now more important than ever for those setting up new structures (or those with existing structures) to obtain appropriate tax advice.
  • Advice on tax-efficient financing –interest payable on bank mortgages or private loan arrangements can be used to significantly reduce taxable rental profits. However, care must be taken to prevent interest payments from suffering unnecessary withholding taxes. This area has also become more complex following the phased reduction in tax relief on finance costs for residential property.

The next step

For more information about the services we offer our clients in the property sector, please contact one of our advisers today.

Alternatively, visit the property sector page on our main website.