Changes to non-resident SDLT from 1st April 2021

Yesterday, 1st April 2021, there was a change to Stamp Duty Land Tax (SDLT) for non-residents of the UK who purchase property in the country.

The new measure means an additional 2% surcharge will be applied on existing SDLT rates for non-UK residents. The surcharge will also apply to some UK resident companies controlled directly or in-directly by non-resident persons. The surcharge will apply to both freehold and leasehold properties in England and Northern Ireland.

A spokesperson for HMRC said:

“We’re reminding professionals that they should make their clients aware of the impending change if they could be affected, particularly considering the length of time that property purchases can take to complete.

“For individuals, it’s worth remembering that a person’s residence status is determined by a simple and SDLT specific test which requires the individual to be present in the UK for a set number of days by reference to the effective date of the transaction.

“They can also encourage clients to use the government’s online calculator at GOV.UK. This will allow them to work out their likely SDLT liability ahead of a potential purchase. “

Full guidance on the change, including how residency is determined for these purposes, can be found at this link.

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