This will mean that shortly, any non-resident buying residential property in the UK, who currently owns another home anywhere in the world, will pay an additional 4% SDLT (on top of the standard SDLT rates of 2-12% mentioned below) on the purchase of the property.
You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in the UK. The total value you pay SDLT on (the ‘consideration’) is usually the price you pay for the property/land.
Sometimes it might include another type of payment like:
- goods
- works or services
- release from a debt
- transfer of a debt, including the value of any outstanding mortgage
You usually pay SDLT on increasing portions of the property price above £125,000 when you buy residential property, e.g. a house or flat, or above £150,000 when you buy commercial property. The rates range from 2% to 12% for residential properties and 2% to 5% for commercial properties.
The below table shows the current SDLT rates for UK residential property, and the additional 3% charge for buying a second home (note that this is applicable even for property values of less than £125k):
The current additional 3% and future additional 1% SDLT surcharges detailed above are applicable for both individuals and corporate entities.
Gary Bloch FCCA
Managing Partner
For more information please contact Gary:
gary.bloch@fkgb.co.uk
050 578 9154
