Stamp duty land tax

Higher rate stamp duty land tax for purchases of additional residential properties

 

What is the 3% Stamp Duty surcharge and who pays it?

England and Northern Ireland:

The 3% stamp duty surcharge is an addition to existing Stamp Duty rates (set out in the table below).
The extra tax applies to anyone, whether you are resident or non-resident, who is buying additional residential properties, for example, a buy-to-let or holiday home, within England and Northern Ireland. To see the official guidance please download the following:
https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-for-purchases-of-additional-residential-properties

Scotland and Wales have devolved taxes as follows:

Scotland – Land and Buildings Transaction Tax – https://www.revenue.scot/land-buildings-transaction-tax/guidance/calculating-tax-rates-and-bands 

Wales – Land Transaction Tax – https://gov.wales/land-transaction-tax-calculator

Stamp duty land tax surcharge for non residents

 

From 1st April 2021 Non UK residents and UK companies controlled by non UK residents pay an additional 2% surcharge on the purchase of any residential property costing more than £40,000. 

Non UK resident for these purposes means that you were not present in the UK for at least 183 days prior to the date of purchase. So, whilst you may be resident for Income Tax purposes, you may not be resident for Stamp Duty Land Tax purposes.

 

DISCLAIMER
© Thandi Nicholls Ltd 2021 All Rights Reserved – The above articles are provided for guidance only and may not cover your personal circumstances so you should not rely on them. It is important that you seek appropriate professional advice which takes into account your personal circumstances where you can provide the full facts of the case and all documents related to your case. Thandi Nicholls Ltd t/a uklandlordtax.co.uk, K Nicholls FCA or S Thandi cannot be held responsible for the consequences of any action or the consequences of deciding not to act.

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