Category
Property tax
Published
27/07/2021
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Property tax

New stamp duty surcharge for overseas property buyers from April 2021

James Poyser
CEO

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 rateOverseas buyer stamp duty rate
£0-£125,0000%5%
£125,001-£250,0002%7%
£250,001-£925,0005%10%
£925,001-£1.5m10%15%
£1.5m+12%17%
James Poyser
CEO

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