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UK Property Investment

The property market in the United Kingdom – domestic, retail and industrial – has always been a magnet for inward investors.

The market is well served by professional advisors and the legal system guarantees security of ownership.

Moreover, one of the major attractions of this market is the UK system of property taxation. If the correct and proper structure is in place, UK property investment can attract little or no UK tax on the profits or earnings of those who are either not resident or domiciled there.

To find out how we can help you, please contact our property investment consultant:

OCRA (London) Limited

OCRA (London) Limited
14 Hanover Street
London W1S 1YH
United Kingdom

Telephone: +44 20 7317 0600
Facsimile: +44 20 7317 0610

OCRA (Hong Kong) Limited

3908 Two Exchange Square
8 Connaught Place, Central
Hong Kong

Telephone: +852 2522 0172
Facsimile: +852 2522 4720

Consider these factors:

  • The United Kingdom imposes no withholding tax on the sale of real estate.
  • The UK government does not impose a Capital Gains Tax on individuals, trusts and companies that reside outside the United Kingdom.
  • There is a generous system of tax allowable deductions, including interest, from rental income generated in the United Kingdom.
  • With careful planning, disposal of properties in the United Kingdom by non-residents can be structured to avoid UK Stamp Duty.

How can OCRA help you? We can:

  • Provide detailed taxation advice regarding the consequences of owning and letting UK property.
  • Arrange legal advice, either in-house or from recommended outside legal specialists, on the acquisition, ownership and disposal of UK property.
  • Provide accounting services for recording UK property activities and dealing with the compliance requirements of the UK authorities.
  • Arrange introductions to skilled and qualified property advisors who in turn can assist in sourcing suitable investment properties as well as provide property management services.
  • Furnish suitable trust and corporate vehicles to achieve a tax- efficient ownership structure.
  • Assist in arranging finance for the acquisition of UK property. The UK mortgage market is large and sophisticated and many of the most tax-efficient structures entail specialist lending facilities. We have very good contacts with a range of major banks and other financial institutions that can facilitate this.

Indicative Bank Finance Summary

This summary is a basic guide to the purchase of UK residential property owned by a trust or company for the beneficial owner’s own occupation or held for investment purposes.

Amount Up to a maximum of 70% of an independent valuation
Currency The loan will be available for draw down in sterling or other major currencies.
Term Either as Interest only to 5 years or on a capital and repayment basis to 25 years.
Security 1) A First Legal Charge over the proposed residential property.
2) A personal guarantee from the beneficial owner may be required if the property is to be used as a residence for the beneficial owner.

Own Occupation:
£500k to £1m rate: 1.00/UK base rate
£1m and above rate: 0.75/UK base rate

£500k to £1m rate: 1.75/UK base rate
£1m and above rate: 1.5/UK base rate

Lending Fee 0.5% for loans over £1m and 1% for loans under Fee £1m. Payable on acceptance of the offer (this fee may be shared with an outside introducer).
Costs All legal and valuation costs incurred by the bank are for the account of the borrower. Valuation costs will typically be 0.08% of the property value.

The above terms are indicative and for discussion purposes only and do not constitute an offer of finance. Any subsequent offer of finance that may arise will be subject to full due diligence by the bank, formal credit approval by the bank’s credit committee, and satisfactory property and/or other asset valuations. Additional security or legal opinions may also be required. While all due care has been taken in the preparation of this summary, no responsibility can be taken for errors or omissions.

OCRA Worldwide is not a specialist property company and the appropriate professional advice must be taken before contemplating investment transactions in property.

Overview of the Property Market in the United Kingdom:

Over the years, the UK property market has proved to be a sound investment. The growth in values and the stability of rental returns are supported by the following factors:

  • Shortage of land in the most popular locations.
  • British tradition of property ownership.
  • The favorable tax regime.
  • A record of average rental returns exceeding interest rates, with a good client pool of quality tenants.


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Disclaimer: Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other
professional advice. OCRA Worldwide does not accept any responsibility, legal or otherwise, for any errors or omission.