SDLT Surcharge For Non-UK Buyers

There will be a new sur-charge on stamp duty land tax (SDLT) for non-UK buyers of residential property in England and Northern Ireland

When?

This will come in on 1st April 2021

Details?

It will add 2% to all existing rates of SDLT payable on the purchase of a residential property

Why?

Foreign buyers are reportedly a cause of property price inflation, particularly in London. The stated aim of the surcharge is to improve the affordability of housing for people living in the UK. The Government has pledged to spend the extra tax yield on alleviating homelessness

Even Joint Purchases?

With the exception of Crown employees & married or civil partner couples, if any one purchaser is a non-resident the surcharge will apply. The surcharge will apply to the whole purchase price, not merely the proportion attributable to the non-resident’s share

What is Excluded?

Land & non-residential buildings are excluded. Also are certain types of collective residential property such as schools, purpose-built student accommodation & care homes.