Stamp Duty Land Tax: Surcharge For Non Resident Purchasers
Takes effect from the 1st April 2021 ...
POSTED BY HELEN BEAUMONT ON 18/03/2020 @ 8:00AM
The Chancellor has confirmed a Stamp Duty Land Tax (SDLT) surcharge on the purchase of residential property by non-UK purchasers ...
A new Stamp Duty Land Tax surcharge will apply from 1st April 2021 for non-UK buyers!
copyright: olegdudko / 123rf
Any purchase of residential property in England and Northern Ireland by any non-UK resident will incur an SDLT surcharge of 2% from the 1st April 2021. This applies in addition to any normal rates of SDLT that normally apply.
"Remember, it only applies in England
and Northern Ireland!"
Land Transaction Tax (LTT) applies to residential properties in Wales, and the Land and Buildings Transaction Tax (LBTT) applies in Scotland. The Welsh Government has to decide if a surcharge for LTT will be applied to non-UK purchases as choosing not to may affect the funding settlement agreed between Westminster and the Welsh Assembly.
The same applies to Hollyrood with their LBTT, although this could include purchasers who even live outside Scotland. Again, just like Wales, not introducing the surcharge could affect their funding settlement.
"However, there is some relief!"
Stamp Duty Land Tax relief has been announced for any housing co-operatives which can also benefit from relief on the Annual Tax on Enveloped Dwellings (ATED). Relief from the 15% flat-rate of SDLT on some purchases costing more than £500,000 applies from the Autumn 2020 budget when the purchase is in either England or Northern Ireland.
ATED applies UK-wide and will be subject to relief for some housing co-operatives from the 1st April 2021 with refunds for the tax year 2020/21 being made available.
Until next time ...
Would you like to know more?
If you'd like to know more about Stamp Duty Land Tax, do call me on 01908 774323, leave a comment below or click here to ping over an email and let's see how I can help you.
About Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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