Speaking at the conservative party conference last week, Prime Minister Theresa May announced plans for a new Stamp Duty Land Tax surcharge for non-UK resident buyers of UK residential property. This will include both private buyers and corporate buyers.
We all know about the housing shortage in the UK and this will be just another ‘nail in the coffin’ for overseas investors looking to invest in the UK.
Already, we have a 3% surcharge on stamp duty when buying additional residential property and we assume an additional surcharge if you are non-resident will be added to this.
The reality is that a weak pound has meant that investing in the UK has proved extremely attractive. Given EU rules on not discriminating against EU nationals, we assume this new levy will also apply to British Expats living overseas, i.e. there is no discrimination.
We expect an announcement in the next budget on 29th October 2018.