2% SDLT surcharge for non-resident buyers
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2% SDLT surcharge for non-resident buyers
HMRC have inserted a new paragraph into its SDLT manual providing guidance on how it will apply the 2% SDLT surcharge which comes into effect on 1 April 2021.
What is the SDLT surcharge?
The surcharge provides that an additional 2% is payable in addition to the SDLT which would ordinarily be payable in connection with the purchase of a dwelling and will apply when an individual or corporate buyer, not resident in the UK, purchases a dwelling.
HMRC have indicated they will take a pragmatic approach in assessing evidence of residence and will consider a number of practical points when determining which country an individual has lived within during the preceding year. For the purposes of the surcharge, an individual will be deemed to have been resident if present in the UK on at least 183 days during the 365 days preceding the date of submission of the Stamp Duty Land Tax Return.
The 2% surcharge does not apply to the acquisition of mixed use properties but, interestingly, it will apply if the buyer claims multiple dwelling relief (a difference in approach to the 3% SDLT surcharge payable on the acquisition with additional dwellings which does not apply where multiple dwelling relief is charged).
If you have any queries concerning the issues raised above please contact me at mark.withers@parissmith.co.uk