Overseas Buyers 2% Surcharge Confirmed

The Policy Paper has been published to confirm the changes that will take place from 1st April 2021 that allow for a 2% surcharge on the stamp duty payable on residential property in England and Northern Ireland that is purchased by non-UK residents.

The General description of the measure is as follows:

The measure introduces new rates of Stamp Duty Land Tax (SDLT) for purchasers of residential property in England and Northern Ireland who are not resident in the United Kingdom. The new rates will be 2 percentage points higher than those that apply to purchases made by UK residents, and will apply to purchases of both freehold and leasehold property as well as increasing SDLT payable on rents on the grant of a new lease.

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.

This measure will apply to land transactions with an effective date of 1 April 2021 or later.

Where contracts are exchanged prior to 11 March 2020 but complete or are substantially performed on or after 1 April 2021, transitional rules may apply.

Transitional rules may also apply where a contract is substantially performed on or before 31 March 2021 but does not complete until 1 April 2021 or later.

You can find the Policy Paper here.

Overseas Buyers 2% Surcharge Confirmed

2 thoughts on “Overseas Buyers 2% Surcharge Confirmed

  1. I am a resident here in Southern Ireland and I am purchasing a leasehold property for £145000.00 in UK. How much stamp duty will apply to me .
    1 If I conclude the contract before September the 30th 2021,

    2 If I conclude the contract after September the 30th 2021,

    1. Hi Gerard, if you go to the stamp duty calculator it will give you the option to work out the standard amount after 30th September as well as the reduced amount for properties completed before 30th September. You will then need to add the extra 2% (£2,900). It is obviously best to check the details with your solicitor as it may depend on what other properties you own as well as what type of leasehold it is.

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