September 25, 2026
Private Client
You may be buying a UK home for family visits, investing in rental property or acquiring premises for a business. Whatever the objective, the purchase price is only part of the decision.
Before committing, ask: what will this property cost to buy, own, sell and eventually pass on?
At Bell Howley Perrotton (BHP), we help Spain-based buyers and their advisers understand the UK tax position before ownership and funding decisions are made.
If you already own a home in Spain, your first residential purchase in England or Northern Ireland may attract higher rates of Stamp Duty Land Tax (SDLT). A separate non-resident surcharge can also apply. Your existing property ownership outside the UK therefore matters when calculating the tax on your purchase.
The location also matters: Wales and Scotland have their own property purchase taxes, with different rules.
For commercial buyers, the questions extend beyond purchase tax. VAT can affect acquisition costs and funding, while potential capital allowances should be considered during negotiations—not left until after completion.
The point is not to learn every tax rule. It is to identify which ones matter to your purchase while there is still time to act.
Should you buy in your own name, jointly with family, through a UK company or through an existing Spanish business?
A company may suit some investment plans, but residential property held through a company can bring additional tax charges and reporting obligations. It should not be treated as an automatic tax-saving solution.
We recommend considering the intended use, borrowing, access to profits and longer-term family plans together. A structure that looks attractive at purchase needs to make sense throughout ownership.
Living in Spain does not mean UK property income and gains are taxed only in Spain. UK liabilities can arise alongside Spanish tax and reporting obligations, with double taxation relief subject to conditions and limits.
UK inheritance tax can also apply to UK property owned by someone living overseas, making succession planning relevant from the outset.
Our recommendation is to consider these issues together, rather than treating the purchase, rental income and family wealth planning as separate exercises.
Bell Howley Perrotton provides specialist UK property and wealth tax advice to individuals, families and businesses.
We can review the proposed purchase, compare ownership options and explain the UK taxes, available reliefs and practical actions relevant to your circumstances. Our written advice gives you and your conveyancer a clear basis for progressing the transaction.
For Spanish lawyers, accountants and other advisers, we provide UK tax support that complements your existing client relationship. We work alongside you, with Spanish tax and legal advice remaining with appropriately qualified Spanish advisers.
Whether the requirement is a focused opinion on one issue or a broader pre-acquisition report, we agree the scope and fees before starting work.
You do not need to have every detail settled before approaching us. The property location, approximate price, intended use and proposed purchasers are enough to start the conversation.
Before you—or your client—commit to a UK property purchase, speak to BHP about the tax position. Make the decisions with the full picture in view.
This article provides general information only. Advice should be tailored to the transaction and the buyer’s UK and Spanish circumstances.
Bell Howley Perrotton LLP is a limited liability partnership registered in England and Wales under number OC353525. Registered office: 20-22 Wenlock Road, London, N1 7GU. VAT number: GB 991703492.
BHP Advisory Ltd is a company registered in England and Wales under number 15240401. Registered office: 53 Davies Street, Mayfair, London, W1K 5JH. VAT number: GB 484722859.
