A 2% SDLT surcharge will apply to non-resident buyers of dwellings in England and Northern Ireland from 1 April 2021. It will apply in addition to the existing surcharges for purchases of ‘additional’ dwellings by individuals and purchases of dwellings by companies and it could therefore mean that a maximum stamp duty rate of 17% applies. In order for the surcharge to apply the tranaction must be a ‘non-resident transaction’ where inter alia a buyer fails to pass the relevant stamp duty residence test. There are different residency tests for individuals and companies. Where there are joint buyers all the buyers must pass the relevant stamp duty residence test; if one does not all the chargeable consideration is surcharged. No reliefs or exemptions are proposed for businesses; instead they will need to take advantage of certain ‘flexibilities’ present in the stamp duty regime....
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A 2% SDLT surcharge will apply to non-resident buyers of dwellings in England and Northern Ireland from 1 April 2021. It will apply in addition to the existing surcharges for purchases of ‘additional’ dwellings by individuals and purchases of dwellings by companies and it could therefore mean that a maximum stamp duty rate of 17% applies. In order for the surcharge to apply the tranaction must be a ‘non-resident transaction’ where inter alia a buyer fails to pass the relevant stamp duty residence test. There are different residency tests for individuals and companies. Where there are joint buyers all the buyers must pass the relevant stamp duty residence test; if one does not all the chargeable consideration is surcharged. No reliefs or exemptions are proposed for businesses; instead they will need to take advantage of certain ‘flexibilities’ present in the stamp duty regime....
If you are not a subscriber, subscribe now to read this content.
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