Skybound updates property proposition to support expats

Skybound Property & Finance has enhanced its proposition in a bid to help expatriates identify relevant UK tax, ownership, residence and currency considerations alongside property finance.

Skybound Property & Finance said in a statement that it has strengthened its proposition for expatriates and internationally mobile clients by connecting relevant UK property-tax planning with key stages of the property-finance journey.

The approach identifies material UK tax considerations early and coordinates appropriate expertise alongside borrowing, ownership, rental income, residence and currency, bringing together different key expertise within the Skybound's team and professional connections, the company said.

Kieron Franklin, group head of property and finance at Skybound Wealth, said: “Most expatriate property conversations begin with the mortgage. They should not end there.

“A client may be leaving the UK, renting out a former home, earning in another currency, returning several years later or deciding whether to sell, retain or refinance. Finance, ownership, tax, residence and currency can interact, and they can change the answer.

“By identifying relevant tax questions earlier and coordinating the right expertise, clients can make more informed decisions before their practical options narrow.”

Connected

The connected approach may be valuable when a client is:

• Leaving the UK and retaining property: UK rental income remains within the UK tax system. The Non-resident Landlords Scheme is based on whether the landlord's usual place of abode is outside the UK, which may not always match their tax-residence status. Tax may need to be deducted unless HMRC approves gross payment; gross-payment approval does not make the rent tax-free or remove reporting obligations.
• Buying from overseas: the client may need to assess lender criteria, residential property interests held anywhere in the world, acquisition taxes, non-resident surcharges and whether to own personally, jointly or through a company. Corporate ownership can also create additional SDLT and Annual Tax on Enveloped Dwellings considerations.
• Changing ownership: spouse or civil-partner transfers can be no-gain/no-loss for capital gains tax, but the recipient normally inherits the historic base cost and assuming mortgage debt can create Stamp Duty Land Tax considerations. Jointly held rental income is normally taxed 50:50 unless the beneficial ownership and any required Form 17 declaration support a different split.
• Returning to the UK: residence is assessed under the Statutory Residence Test and split-year treatment is not automatic. Split-year treatment does not generally remove UK property or land gains from UK Capital Gains Tax. The four-year foreign income and gains regime may be available after at least ten consecutive non-UK-resident tax years, but it covers only qualifying foreign income and foreign gains, requires a claim and can result in the loss of certain allowances.
• Selling while overseas: non-UK resident individuals and trustees generally need to report disposals of UK property or land within 60 days of completion, including where no tax is due or a loss arises. Different filing and tax rules can apply to companies.

“The best time to identify these questions is before an offer is made, before a former home is let, before ownership is transferred and before a refinance or sale is already in motion," Franklin added.

“Expat property finance, with specialist UK property tax planning connected where relevant, gives clients a more joined-up way to approach those decisions.”