Details Emerge For Non-Resident Stamp Duty
Draft legislation has been published by the government outlining the details of the 2% stamp duty surcharge on residential property being bought by people who aren’t residents in the UK.
From April 1 2021, the surcharge will apply to non-UK resident companies, trusts and individuals who haven’t been resident for 183 out of a continuous 365 day period that falls withing the “relevant period”.
Mischon de Reya, tax consultancy released a note to advise people of the proposed changes:
“A company will be non-resident where it is not UK resident for corporation tax purposes or where the company is UK resident but is a ‘close company’ controlled by a small number of non-UK investors. The latter is intended to stop non-resident investors circumventing the surcharge by simply setting up a UK company buyer” the note specifies.
Mishcon went on to say:
“Most non-residents (and certain rental sector investors in particular) should therefore aim to complete any pending residential property purchases before April 1 2021, given the double benefit of both the temporary SDLT holiday and the two per cent surcharge not yet applying.”