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Where Taxpayers and Advisers Meet

An extra 1% SDLT surcharge for overseas buyers being proposed?

SDLT Geek
Posts: 133
Joined: Sun Apr 30, 2017 5:45 pm

An extra 1% SDLT surcharge for overseas buyers being proposed?

Postby SDLT Geek » Sun Sep 30, 2018 1:27 pm

I have heard news reports today that Theresa May is now consulting with colleagues at this week's Conservative Party Conference on proposed changes to increase stamp duty land tax for buyers who do not pay UK tax. The idea seems to be that it will be an extra 1% on top of the existing 3% SDLT surcharge, but could be as much as an extra 3%. Any one else heard about this?

SDLT Geek
Posts: 133
Joined: Sun Apr 30, 2017 5:45 pm

Re: An extra 1% SDLT surcharge for overseas buyers being proposed?

Postby SDLT Geek » Mon Oct 22, 2018 11:23 am

There was an article in the Estates Gazette of 20 October 2018 speculating on the form the extra SDLT for foreign buyers could take. It mentions the experience in:
Canada (taxing those who are neither Canadian citizens nor permanently resident in Canada)
Singapore (depending on nationality and residency status)
New Zealand (where it says that only those who are "ordinarily resident" can buy.

SDLT Geek
Posts: 133
Joined: Sun Apr 30, 2017 5:45 pm

Re: An extra 1% SDLT surcharge for overseas buyers being proposed?

Postby SDLT Geek » Sat Nov 03, 2018 8:34 pm

There was an announcement with the Budget on 29 October saying the Government will publish a consultation in January 2019 on a SDLT surcharge of 1% for non-residents buying residential property in England and Northern Ireland.

SDLT Geek
Posts: 133
Joined: Sun Apr 30, 2017 5:45 pm

Re: An extra 1% SDLT surcharge for overseas buyers being proposed?

Postby SDLT Geek » Sat Dec 01, 2018 10:32 pm

HM Treasury have replied to a letter about their consultation and have referred to the "new SDLT surcharge of 1% on non-residents buying residential property in England and Northern Ireland to help to control house price growth and so help ensure those resident in the UK can get on the housing ladder." Also they say "there is evidence that non-resident buyers purchasing homes in the UK could be inflating house prices".

They say: "The consultation will cover all aspects of the charge, including, how non-resident will be defined and how it applies to companies".

It does not seem likely that they will take up my suggestion of using the consultation as a chance to simplify the 3% surcharge and integrate this extra charge into a much simpler system where only those who are not buying a property to live in as their only or main resident have to pay the surcharge.

SDLT Geek
Posts: 133
Joined: Sun Apr 30, 2017 5:45 pm

Extra 1% SDLT surcharge for non-resident buyers Consultation Paper for January 2019

Postby SDLT Geek » Sun Dec 09, 2018 7:35 am

The HMRC Stamp Taxes teams did not give much away about the progress of the preparation of the Consultation Paper in January when I saw them last week. They did say a lot of them are working on it and that they are trying to keep it simple! The statutory residence test alone (in FA2013/Sch45) is 68 pages with many hundreds of pages of other relevant legislation on the point. They did not say if they are drawing on that or taking a different approach. We will just have to wait and see.

SDLT Geek
Posts: 133
Joined: Sun Apr 30, 2017 5:45 pm

Re: An extra 1% SDLT surcharge for overseas buyers being proposed?

Postby SDLT Geek » Tue Jan 01, 2019 3:09 pm

We are expecting the Consultation Paper on the extra 1% stamp duty land tax for non-resident buyers to come out some time this month.

SDLT Geek
Posts: 133
Joined: Sun Apr 30, 2017 5:45 pm

Re: An extra 1% SDLT surcharge for overseas buyers being proposed?

Postby SDLT Geek » Thu Jan 03, 2019 11:24 am

I have heard that the Treasury and HMRC are aiming to publish the Consultation Paper around the end of the month.

SDLT Geek
Posts: 133
Joined: Sun Apr 30, 2017 5:45 pm

Re: An extra 1% SDLT surcharge for overseas buyers being proposed?

Postby SDLT Geek » Thu Jan 10, 2019 10:13 pm

There is to be a standard 12 week consultation period once the Consultation Paper is published. This is still expected towards the end of this month, but the draft has to go before Ministers and special advisers first.


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