Stamp duty land tax from 1 April 2021

UK government policy on SDLT is changing

Stamp Duty Land Tax 

From 1st April 2021, the temporary exemption up to £500,000 will no longer apply. The standard rates and the 3% surcharge will revert for domestic transactions.

Additionally, from 1st April 2021, the position will become more expensive for non-UK residents acquiring houses or flats in England and Northern Ireland.

It is proposed for them that a 2% surcharge will be introduced in addition to the existing rates.

A SDLT 2% surcharge for non-UK residents

This comes in from 1st April 2021.

A brand new 2% SDLT surcharge will be introduced on non-UK residents purchasing houses or flats in England and Northern Ireland.

Wales and Scotland have their own SDLT legislation… presumably they will also bring this in, in due course.

This applies to non-resident individuals, companies and trusts buying UK residential property.

There will be separate residence tests for non UK resident companies and trusts.

The 2% surcharge will be added to the residential SDLT rates on UK houses and flats acquired by non-residents. 

It will be in addition to the existing 3% higher rates surcharge which most foreigners already pay because they already own a house overseas.

Accordingly, SDLT for overseas buyers will be at a top potential SDLT rate of 17% (15% plus the 2% surcharge) of the purchase price! 

The detailed changes and new legislation will take effect from 1st April 2021.

If you wish to speak to a member of our tax advisory team regarding SDLT and the impact it is likely to have upon your affairs after 1 April 2021 please contact us on 020 7330 0000.  

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