Start a limited company for your next property investment. Just £49Learn more
Category
Property tax
Published
27/07/2021
Share this post
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%

Was this helpful?

James Poyser
CEO

Recent blog posts

Business

Autumn Statement 23: Overview for landlords

In the Autumn Statement, the Chancellor Jeremy Hunt set out his plan to promote growth. In this post, we look at the key tax changes that property investors need to know about.

By Hollie Chapman | 22/11/2023
Business

Essential Mortgage & Property Trends for Your 2024 Investment Outlook

Nick Sheppard, managing director of Framework Mortgaging, shares his insights on the mortgage market and key things for buy-to-let investors to consider heading into 2024.

By Nick Sheppard | 03/10/2023
Business

What landlords need to know about the Renters’ Reform Bill

The upcoming Renters' Reform Bill, as discussed by Housing Secretary Michael Gove, aims to fundamentally alter the relationship between landlords and tenants in the UK. The bill is designed to offer tenants enhanced protection against unpredictable rent increases and other issues. In this blog, we’ll explore exactly what the proposed reforms mean for landlords.

By Hollie Chapman | 17/05/2023