Non-UK residents tax and stamp duty

Buying a house is a big deal. Britain is a nation of home owners so buying one, or more, houses is common compared to Europe and other parts of the world. If you or your loved ones are non-UK residents then buying a house in the UK entails knowing the current market and making trips to the UK to view properties. Once you have found the house you want and you buy it you must pay stamp duty.

Stamp Duty Land Tax (SDLT) for non-UK residents

The HMRC offers guidance for non-UK residents to check if you have to pay the Stamp Duty Land Tax (SDLT) surcharge from 1 April 2021 on residential property in England and Northern Ireland. It’s no April fool’s day prank that, from 1 April 2021, different rates of SDLT apply to purchasers of residential property in England and Northern Ireland who are non-UK residents. The new rates are two percent higher than for UK residents. This surcharge applies to purchases of both freehold and leasehold property and also certain UK resident companies that are controlled by non-UK residents. 

There are more qualifications such as; the surcharge applies to all ‘non-resident transactions’, so even if you intend to live in the property you must pay the surcharge when you buy a major interest in a freehold residential property of £40,000 or more. The bottom line is stamp duty is higher.

Stamp Duty Land Tax (SDLT) for non-UK residents

SDLT for Non-UK residents in Scotland and Wales

As with many rules and regulations and changes in the UK the surcharge does not apply to purchases of land or buildings in Scotland or Wales.There is further information available from the HMRC as well as the usual guidance examples. If you were unaware of these changes, or other changes for other taxes as a non-UK resident, the best way to check what you have to pay and what you don’t is to ask a good, professional non-UK resident tax advisor, like The Taxman UK.

At The Taxman UK our team of qualified and experienced non-UK resident tax advisors are right up to date with the latest changes in the HMRC rules and regulations, not just on stamp duty and country differences in the UK but, on a range of other tax areas including; inheritance tax, National Insurance, capital gains and more. The Taxman UK specialises in helping non-UK residents with their annual tax returns to HMRC.

Please don’t hesitate to contact one of our experienced non-UK resident tax advisors by sending us an enquiry at help@thetaxmanuk.com for an initial consultation. Good tax advice will save you time, money and stress, whether you are planning to buy a house in England or Northern Ireland or not.   

The Taxman UK  Making Life Less Taxing for non-UK residents”