New stamp duty surcharge for overseas property buyers from April 2021
)
From April 2021, an additional 2% stamp duty surcharge will apply on top of existing stamp duty rates for overseas (non-UK residents) purchasing property in England or Northern Ireland.
)
The new rates apply to purchases of both freehold and leasehold property as well as increasing SDLT payable on rents on the grant of a new lease.
Policy background
The objective behind the government’s surcharge is to make house prices more affordable, help people get onto and move up the housing ladder and tackle homelessness.
What overseas buyers need to know
If you already own properties (either abroad or in the UK), you’ll also need to pay the 3% stamp duty surcharge on additional properties, such as buy-to-lets and holiday lets.
Non-UK companies have to pay both the 2% and 3% surcharges when purchasing residential property.
HMRC recognised that some individuals have complex affairs and stated: Where individuals pay the surcharge but then satisfy the residence conditions in the 12 months following the transaction, they may be entitled to a refund.
Non-UK resident / overseas buyers stamp duty rates from 1 April 2021
| Property price | Standard Stamp Duty rate | Overseas buyer stamp duty rate |
|---|---|---|
| £0-£125,000 | 0% | 5% |
| £125,001-£250,000 | 2% | 7% |
| £250,001-£925,000 | 5% | 10% |
| £925,001-£1.5m | 10% | 15% |
| £1.5m+ | 12% | 17% |
Our most popular posts:
Our most popular posts:
Work with the Pro's
Explore our limited company services
From starting up, to getting tax advice for growing portfolios, our unmatched range of services means with Provestor you're guaranteed to find your perfect service.
)
Limited company start up →
Start your tax-smart company and invest with confidence
)
)
)
)
)
Pro Masterclass →
New to limited companies? Learn straight from the Pro's in the free 10-lesson Masterclass.
)
Property tax advice →
Get on-demand advice from qualified property tax advisors.
)
Tax-smart app →
File your company accounts and tax returns yourself using our tax-smart app
From £14.99/mo
Limited company start up →
Start your tax-smart limited company and complete your property purchase with confidence
Pro Masterclass →
New to limited companies? Learn straight from the Pro's in the free 10-lesson Masterclass.
Property tax advice →
Get on-demand advice from qualified property tax advisors. Buy and book online, instantly.
)
Tax-smart app →
File your company accounts and tax returns yourself using our tax-smart app
From £14.99/mo