More Stamp Duty for Non-UK Resident Property Purchases

A proposal of a 1% Stamp Duty Land Tax (SDLT) surcharge for residential property purchases by Non-UK residents has been published by HMRC.  This is on top of the 3% additional stamp duty that property investors already pay for buying 2nd/investment properties that are not their main residence.

HMRC is looking at views on the new surcharge after the announcement in the 2018 budget.

The government has advised the new surcharge proceeds will be used to tackle keeping people off the streets sleeping rough.

Discussion points:

• All residential property purchaser by non-UK residents or corporate bodies the surcharge will apply.
• Non-UK residents will be classed as they have spent fewer than 183 days in the UK in the last 12 months, prior to any property purchase.
• Any corporate purchaser the same rule applies if they are established and managed outside the UK
• As above point a 1% charge will be added to the 15% SDLT for these companies purchasing properties.
• Second home buyers will also pay the extra 1% on top of the 3% rate and applies to corporate (and private/personal Non UK) residential purchases.
• The surcharge will also apply to the whole of the purchase price on multi purchases on any of the buyers being non-UK resident.
• Multi purchases, where 2 or more properties are brought in one transaction there will be a multiple dwelling relief and the SDLT will be calculated on the average price of the total purchase.
• The surcharge will apply to UK resident close companies where one or more direct or indirect non-UK resident has an interest or a share in that company.

The consultation will cease 6^th May 2019.