Stamp Duty Land Tax rates are potentially set to change from 1st April 2021, for non-UK residents. The new rates will see a rise of 2% points higher than applications to purchase made by UK residents. This change will apply to both purchases made on freehold and leasehold property as well as being payable on rents on the grant of a new lease.
Consultation on the draft legislation has been opened and will close at 11.45 pm on 23 November 2020. HMRC welcomes comments from those affected, as well as conveyancers and ‘other professionals who make SDLT paper returns’.
The government is proposing to introduce this surcharge in efforts to make house prices more affordable, enabling people to get onto and move up the housing ladder. The revenue raised from this surcharge will be used to tackle the issue of rough sleeping in the UK.
These new rates may also be able to help control house price inflation, by seeing a reduction in residential property purchased by non-UK residents.
Further information can be found on the government website.