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.
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.
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.
|Property price||Standard Stamp Duty rate||Overseas buyer stamp duty rate|
The Prime Minister’s announcement of a 1.25 percentage point rise in tax on dividend shares may come as a blow to property investors operating via a limited company, particularly after the increase to corporation tax announced in the March budget.
Gary shares his first-hand account of what it's like working with Provestor, the property accountants.