The policy announced during the 2020 Budget where international buyers purchasing UK properties will be required to pay a 2% additional stamp duty surcharge comes into force today.
The surcharge is expected to raise around £140 million by the end of the financial year 2024/25 and the money will be used to fund policies to reduce rough sleeping in England.
An international buyer purchasing a second home more than £1.5 million could pay a stamp duty bill now of 17% of the purchase price.
The surcharge is applied to non-resident buyers and certain UK-resident companies managed by non-residents buying a property in the UK.
To be classed as a UK resident individual must be in the UK for at least 183 days, during the period beginning 364 days before the date of transaction and ending 365 days after that date.
Exclusions from the surcharge will be off-plan purchases and build-to-rent sector properties.
Despite the pandemic there will be a high demand from overseas buyers for UK property given the perceived safe haven nature of the UK, the weak pound and as ever, a strong property growth market.