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New rules on calculating stamp duty land tax (SDLT) explained by Hegarty Solicitors




From April 1, 2021, new rules come into force when calculating stamp duty land tax (SDLT) on purchases of freehold residential properties. A two per cent surcharge will be added to the usual residential SDLT calculation for non-UK residents.

A non-UK resident is someone who is out of the UK for more than six months in a 12-month period, which need not be consecutive days.

For individuals purchasing with others, the surcharge applies when any one of those individuals is a non-UK resident. If, however, the non-UK resident(s) moves to the UK to live, within a year of completion, the surcharge could be reclaimed within two years of completion (as long as none of the buyers own an additional property).

Rebecca Walton, of Hegarty Solicitors
Rebecca Walton, of Hegarty Solicitors

For companies, this surcharge applies where one or more of the controlling owners are non-UK residents on the completion date or the company is not incorporated in the UK. The rules are more complex for companies who are likely to require specific bespoke tailored advice which can be provided during the transaction.

HMRC do have an SDLT calculator on their website but it must only be used as a general guide and should not be relied upon for complex transactions.

There are also exceptions, exemptions and reliefs that may apply to individuals and companies.

If you require further advice regarding the new SDLT non-UK resident surcharge, please contact our commercial property team on propertycommercial@hegarty.co.uk.



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