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SDLT non-resident surcharge

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The CIOT has raised concerns around the introduction of a 2% SDLT surcharge for non-UK resident purchasers of residential property in England and Northern Ireland, as proposed in the draft legislation for Finance Bill 2021.

Of particular concern is the disproportionate complexity of the draft legislation, particularly in relation to the non-UK control test which is based on the close company legislation. The CIOT suggests a simplified test based on the ultimate beneficial ownership instead. Other points raised include:

  • Dual-resident companies: as the legislation currently stands it is not clear how the charge will operate to take into account a tiebreaker clause under a double tax treaty for a dual-resident company.
  • Spouses and civil partners: further consideration is needed over how the provisions will apply if one is UK resident and the other is not.
Issue: 1502
Categories: News