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Where Taxpayers and Advisers Meet

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

SDLT Geek
Posts: 171
Joined: Sun Apr 30, 2017 5:45 pm

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

Postby SDLT Geek » Sat Feb 02, 2019 7:20 am

The consultation paper did not appear this week, so we await it next week. A key point will be the treatment of expatriates returning to the UK and buying a property.
1. How will the proposals treat an expat with no other properties worldwide so that the 3% surcharge would not apply? Could the 1% operate on its own in that case?
2. What of an expat who has been non-resident for UK tax purposes, but will become resident as part and parcel of buying a home here and moving in?

SDLT Geek
Posts: 171
Joined: Sun Apr 30, 2017 5:45 pm

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

Postby SDLT Geek » Fri Feb 08, 2019 5:47 pm

We had expected the Consultation Paper out by now, but there is no sign of it. One problem HMRC will face is what test of "residence" they will use. The Statutory Residence Test is normally determined for a whole year and sometimes it will not be known until well through the year what the outcome of the test will be. So as well as being complex and not understood by conveyancers, it would be odd to use a test which sets a tax status for a whole year in a transaction tax which depends on the circumstances on a particular date. Even more so for expats where their residency status might well change in the year when they buy a home in England as part of a plan to return.

SDLT Geek
Posts: 171
Joined: Sun Apr 30, 2017 5:45 pm

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

Postby SDLT Geek » Mon Feb 11, 2019 9:52 am

Here is a link to a blog on some things to look out for when the Consultation Paper comes out, especially for returning expats. https://www.blakemorgan.co.uk/news-events/blog/non-resident-buyers-and-1-extra-sdlt/

SDLT Geek
Posts: 171
Joined: Sun Apr 30, 2017 5:45 pm

Consultation Paper is out An extra 1% SDLT surcharge for overseas buyers being proposed?

Postby SDLT Geek » Mon Feb 11, 2019 1:58 pm

The Consultation Paper has been published, here is a link: https://www.gov.uk/government/consultations/stamp-duty-land-tax-non-uk-resident-surcharge-consultation


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