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 |
---|---|---|
£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% |
In the March 2024 budget, the Chancellor announced the end of the Furnished Holiday Let (FHL) tax regime. This shock announcement has left investors worried about the future. In this blog, our Head of Tax unpacks the impact of the holiday let tax changes and advises how FHL owners can assess the impact on their investment strategies and plan ahead.
In the Spring 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.
If you're planning to invest in rental properties in 2024, it's important to focus on locations that offer the highest rental yields. In this blog, we will share the top UK rental yield hotspots, along with tips to help you find the best investment opportunities.