Stamp duty surcharge ‘could reduce house price inflation’
The government is considering a stamp duty surcharge for non-UK resident homebuyers to reduce house price inflation and provide funds to help the homeless.
The Treasury is conducting a study to consider how a new 1% increase to stamp duty costs for non-UK residents buying residential property in England and Northern Ireland would work. This follows the announcement of the proposed rate change in last November’s Budget Statement by Chancellor Philip Hammond.
Mel Stride, Financial Secretary to the Treasury and Paymaster General, said there was evidence that non-UK resident buyers of UK property could be inflating house prices.
He added: “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 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.
The Stamp Duty Land Tax: non-UK resident surcharge 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. We shall keep clients informed of developments.
Please contact Dipak Odedra or Gurjit Dhadar if you would like advice about the legal aspects of buying or selling property.