Stamp Duty Land Tax Surcharge

The Chancellor announced a 2% surcharge on Stamp Duty Land Tax rates, which applies to non- UK resident purchasers of residential property located in England or Northern Ireland. This surcharge will come into play from 1st April 2021.

At the moment, Stamp Duty Land Tax for non-UK residents is paid at the same rates on purchases of property as is paid by UK resident buyers.

The reason for this change in an additional surcharge it to deter foreign buyers from driving up property prices.

Who does this apply to?

For these purposes, someone is a UK resident if they spend 183 days (six months) in the UK in any continuous period of 365 days in the “relevant period”.

The relevant period is the two-year period commencing 364 days before the completion date of the purchase and ending 365 days after.

Please note: there will be separate residence tests for companies, trusts and other buyers

How we can help

If you are considering buying a residential property in the UK at a time when you, or your company, or trustees are likely to be treated as a non-UK resident; please get in touch.

We can advise you whether the surcharge will apply to you and if so, what you might do to mitigate the stamp duty surcharge, or to reclaim it.

Please call us on – 01905 700949

To view our other recent blogs please click here