The government has announced plans to introduce a Stamp Duty Land Tax (SDLT) surcharge for foreign buyers of UK property.
In a bid to make homes more affordable for UK residents the government will consult on proposals to apply a surcharge of 1% when non-resident individuals and companies buy UK property. No details have yet been released as to how this will work or when it will apply from, but the government say that it is expected to raise up to £120m. The consultation will be launched in January 2019.
If enacted this new measure will follow several changes which have impacted overseas property investors in recent years including the introduction of the Additional dwelling 3% surcharge in April 2016, and Non-Resident Capital Gains tax for residential property in 2015 which is due to be extended to all UK property from April 2019.
Links to our guides:
SDLT & residential property (dwellings): higher rate
CGT: different ways of taxing UK property
Offshore company holding UK residential property: tax issues
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