As the Government is committed to helping more people into home ownership, there is, however, evidence that purchases of property by non-UK residents is pushing up house prices for UK residents.
The Government is seeking views for the surcharge, with the consultation closing on 6 May 2019, which will apply to freehold and leasehold purchases of residential property made by non-UK resident individuals and certain non-natural persons.
The Stamp Duty Land Tax: non-UK resident surcharge consultation follows a commitment made by the Prime Minister and a subsequent announcement of the proposed rate in the 2018 budget. It will cover all aspects of the charge, including how non-residents will be defined and how it applies to companies. Crown employees working abroad – such as military service personnel – will not have to pay the surcharge and those who buy a residential property and then move to the UK will be eligible for a refund.
Mel Stride, Financial Secretary to the Treasury and Paymaster General said:
“The UK is and will remain an open and dynamic economy, but some evidence shows that non-UK resident buyers of UK property could be inflating house prices.”
Further details will be published after the consultation has concluded on how much the charge is expected to raise.