he Stamp Duty Land Tax: non-UK resident surcharge consultation is open for comment until 6 May.
It introduces the concept of a SDLT surcharge for non-UK resident individuals and certain non-natural persons purchasing residential properties in England and Northern Ireland. The consultation mentions a 1% surcharge on each of the bands.
In the consultation, it’s highlighted that the existing Statutory Residence Test (SRT) is ‘a complex piece of legislation, involving several interconnected tests which consider closeness of connection to the UK as well as periods of time spent in and out of the UK’ and proposes a simple test for SDLT.
The proposed simple test would also be used when considering available reliefs. For example, a refund of the surcharge being available where ‘an individual who has been subject to the surcharge spends 183 days or more in the UK in the 12 months following day of transaction’.
The consultation is clear that the surcharge is an addition to the existing rules. For example, non-UK residents who meet the criteria for first time buyers’ relief (FTBR) will pay the surcharge at 1% on the chargeable consideration between £0 – £300,000 and 6% (5% + the 1% surcharge) on any portion between £300,000 – £500,000.
View the full consultation containing proposals that may be within the next Finance Bill.
Article from ACCA In Practice