HMRC has updated its information about the Stamp Duty Land Tax (SDLT) surcharge for non-residents who are purchasing property in England and Northern Ireland after the 1st of April 2021 ...
This means that SDLT is due on the purchase of land and buildings and must be paid within 14-days of completion. Remember, however, that SDLT was temporarily increased until the 31st of March 2021 so this means the rates will revert to their previous state.
The SDLT surcharge means a 2% higher payment for non-residents than it does for UK residents, but it does not apply to non-residential property such as shops and offices!
HMRC has created a number of tests which allows buyers to gauge if they are subject to the new Stamp Duty Land Tax surcharge as the UK Statutory Residence Test does not apply here.
Buyers can use this checklist instead:
- If you are not present in the UK for 183 days during the 12-month period before your purchase
- A corporate buyer is non-resident if they do not pay UK Corporation Tax
- If you're buying in partnership with another person and either of you is a non-resident, even if the other one is
- A trust will normally be classed as non-resident if any of the trustees are non-residents themselves, even if another trustee is
There are plenty of details about the current and new rates of SDLT which can be found on the Government's website which you can find at gov.uk.
If you'd like to find out more about anything I've written here, do call me on 01908 774323 or leave a comment below and let's see how I can help you.