Consultation launched on extra 1% stamp duty for non-UK resident buyers
A new property tax for people buying property in parts of the UK who are non-UK resident buyers is being considered as part of the Government’s effort to help control the rise of house prices, it has been announced.
Proceeds of the stamp duty new surcharge would be put towards measures to tackle rough sleeping which Ministers have committed to ending y 2027.
The Treasury has launched a consultation into proposals to add 1% onto the stamp duty paid when buying a home in England and Northern Ireland, payable by those who are not British residents
This follows a commitment made by the Prime Minister and a subsequent announcement of the proposed rate at the last Budget in 2018.
It will be up to the devolved Parliaments in both Scotland and Wales to decide if they want to introduce a similar surcharge on property taxes that they administer.
Mel Stride, Financial Secretary to the Treasury and Paymaster General, said:
‘The UK is and will remain an open and dynamic economy, but some evidence shows that non-UK resident buyers of UK property could be inflating house prices.
‘A 1% surcharge could help more people own their own homes in the future, and its proceeds will go towards tackling rough sleeping, boosting our plan to halve the numbers of rough sleepers by 2022.’
The consultation will cover all aspects of the charge, including how non-residents will be defined and how it applies to companies. Further details will be published after the consultation has concluded on how much the charge is expected to raise.
The charge will apply to any person who is non-resident in the UK, including certain UK resident companies which are controlled by overseas shareholders.
However, crown employees working abroad, such as military service personnel, will not have to pay the surcharge at all whilst those who buy a residential property and then move to the UK will be eligible for a refund of their extra payment.
Kindly shared by Property Wire