Foreign real estate investors must consider ensuring compliance and tax efficiency as Overseas Property Investment in the UK comes with various tax implications. Rental income earned from UK property is subject to Income Tax. Investors must pay Capital Gains Tax (CGT) when selling UK property. Stamp Duty Land Tax (SDLT) is applied to property purchases. Property owned through a company and valued over a certain amount is subject to the Annual Tax on Enveloped Dwellings (ATED). Even non-UK domiciled investors are subject to Inheritance Tax (IHT). Investors should check if their home country has a Double Taxation Treaty with the UK for potential tax relief.
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