New rates of Stamp Duty Land Tax (SDLT) have been introduced for purchasers of residential property in England and Northern Ireland who are not resident in the United Kingdom. They will be 2 percentage points higher than those that apply to purchases made by UK residents.
The following will be affected by the measure:
∙ non-UK resident purchases of residential property in England and Northern Ireland;
∙ conveyancers;
∙ other professionals advising on transactions of this kind.
The measure will apply to purchases of freehold and leasehold properties. SDLT payable on rents on grants of new leases will also be increased.
It will apply to transactions with an effective date of 1 April 2021 or later.
Transitional rules may be applicable in the following cases:
∙ if contracts are exchanged before 11 March 2020 but complete or are substantially performed on or after 1 April 2021;
∙ if a contact is substantially performed on or before 31 March 2021 but completes on or after 1 April 2021.
The objective of this measure it to make house prices more affordable for UK residents.
If you have a question, please do not hesitate to contact James Cohen directly on [email protected] or 0207 822 2257.
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