A new surcharge for Stamp Duty Land Tax (SDLT) has been introduced for non-UK residents, effective for all purchases completing on or after 1st April 2021.
The scheme, announced by Rishi Sunak last year in the March 2020 Budget, applies a 2% surcharge on non-UK residents (with a new definition of this for the purposes of SDLT) purchasing residential properties. The aims of the scheme are;
- to improve affordability and stock of homes for UK residents
- to control property price inflation, especially in areas where foreign buyers are a contributory factor in increased property prices
- address the issue of rough sleeping, all monies received through the surcharge will be used to combat this
The surcharge applies if one or more of the purchasers of a residential property is a non-resident of the UK. To qualify as a UK resident you must have resided in the UK for at least 183 days in the year immediately before the purchase. If you live in the UK but have worked abroad in the year you may still be liable for the surcharge.
If you have any questions on the SDLT surcharge and whether it may effect a property purchase you are involved in. Please contact Warren Douglas or call him on 01803 403 403.
The content of this article is correct as at the date of posting and is for information purposes only. Whilst we try and ensure it is accurate we do not warrant or guarantee that this is the case, nor do we accept any responsibility in the event that it is relied on. The information is not intended to be a substitute for legal advice which you are recommended to obtain.Back to News