Overseas property business for individuals

Produced by Tolley in association with of Crane Dale Tax

Owner-Managed Businesses

Guidance

STOP PRESS: The remittance basis is to be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in Finance Bill 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

This guidance note looks at the income tax implications of owning and running an overseas property business for a UK resident individual. The treatment depends on the ownership structure of the business.

For more on the taxation of an overseas property business which is subject to corporation tax, see the Overseas property businesses for companies guidance note in the corporation tax module.

The purchase of a property abroad will always be complex as at least two different jurisdictions’ laws will need to be dealt with when considering the tax aspects. For this reason, it will always be important to take

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Rob Durrant-Walker

Tax Director at Crane Dale Tax , Corporate Tax, OMB, Personal Tax

Rob is a cross-tax advisor with a particular focus on property tax planning, and business structure planning for OMB’s. He provides tax advice to other accounting firms, balancing commerciality, ethics, and understanding complexity. His 30+ years of experience start at the Inland Revenue in Hull. After completing his ATT and CTA by 1999 with PKF, he subsequently worked at KPMG and UHY prior to managing the business tax team as a director at Garbutt + Elliott. Rob is now Tax Director at the independent tax consultancy, Crane Dale Tax. He is a regular author for Taxation magazine with many articles and Readers Forum contributions since 2005, and he contributes as a virtual member to the CIOT Property Tax technical committee. Rob works remotely from Vancouver in Canada.

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