This briefing sets out the tax, regulatory and structuring points that apply to Indian Tech Founders & Cross-Border Investors deploying capital into UK residential property. It is general information, not tax, legal or immigration advice.
Tax and stamp duty for Mumbai investors
Includes guidance on the 2% non-resident SDLT surcharge, the 5% higher rate on additional dwellings, and how Indian outward-remittance rules and tax collected at source interact with a UK purchase.
UK tax on UK land is owed whatever your country of residence. Stamp Duty Land Tax applies in England and Northern Ireland; Wales and Scotland have their own land transaction taxes. Rates and reliefs change, so we date-stamp this page (last reviewed 2026-09-20) and you should confirm current rates with a UK tax adviser before you commit.
Regulatory context for India capital
Indian residents send money abroad either under the Reserve Bank of India's Liberalised Remittance Scheme, which allows individuals up to USD 250,000 per financial year, or under the Overseas Investment Rules for company and structured investments. Buying property directly and investing through a foreign company are treated differently under FEMA, and holding UK residential property through a company can raise restrictions that need Indian legal advice before any funds move. Tax collected at source can also apply to outward remittances. We coordinate with your Indian advisers on the route and prepare the UK source-of-funds file alongside.
For founders and cross-border investors in Mumbai and Delhi, Company A is the UK asset SPV that legally owns the residential portfolio and keeps it apart from any operating business in India or elsewhere. It is incorporated in the UK, so it sits on the PSC register rather than the Register of Overseas Entities. Overseas control brings the 2% SDLT surcharge, alongside the 5% higher rate for additional dwellings or, for company purchases above £500,000, the 17% flat rate unless a relief such as property rental business relief applies.
Company B holds a master lease from Company A and runs the housing: finding and managing tenants, maintenance, and UK payroll. For founders planning to hire from India or the UK, its contracts, payroll and HR records are the operating evidence a sponsor licence assessor will ask to see, so they are kept properly from the first month.
A sponsor licence depends on a genuine trading business, not a newly registered company, and the Home Office tests that against premises, staff, HR systems and actual trading. We build the footprint and the records. Regulated UK immigration solicitors make the application and give any immigration advice, and nothing here guarantees a licence or a visa outcome.
How the structure works
Every engagement uses two UK companies with separate jobs, so that the property and the operating business never sit in the same entity.
- Company A (asset SPV). Holds legal title to the residential portfolio on its balance sheet, ring-fenced from your other assets and from operating risk.
- Company B (operating company). Takes a master lease from Company A and runs the housing: tenants, maintenance, UK payroll and lettings compliance.
The full delivery model, from incorporation to banking evidence, is set out under Core Services and the Execution Model.