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Stamp duty land tax surcharge to help tackle rough sleeping

Monday 25 February 2019

For anyone purchasing residential property in England and Northern Ireland, who isn’t a UK resident – the Government is looking to introduce a 1% Stamp Duty Land Tax surcharge.

It is being considered as part of the Government’s effort to help control the rise of house prices. Proceeds of the new surcharge would be put towards measures to tackle rough sleeping, which the Government is committed to ending by 2027.

Consultation

As the Government is committed to helping more people into home ownership, there is, however, evidence that purchases of property by non-UK residents is pushing up house prices for UK residents.

The Government is seeking views for the surcharge, with the consultation closing on 6 May 2019, which will apply to freehold and leasehold purchases of residential property made by non-UK resident individuals and certain non-natural persons.

The Stamp Duty Land Tax: non-UK resident surcharge consultation follows a commitment made by the Prime Minister and a subsequent announcement of the proposed rate in the 2018 budget. It will cover all aspects of the charge, including how non-residents will be defined and how it applies to companies. Crown employees working abroad – such as military service personnel – will not have to pay the surcharge and those who buy a residential property and then move to the UK will be eligible for a refund.

Mel Stride, Financial Secretary to the Treasury and Paymaster General said:

“The UK is and will remain an open and dynamic economy, but some evidence shows that non-UK resident buyers of UK property could be inflating house prices.”

“A 1% surcharge could help more people own their own homes in the future, and its proceeds will go towards tackling rough sleeping, boosting our plan to halve the numbers of rough sleepers by 2022.”

Further details will be published after the consultation has concluded on how much the charge is expected to raise.

NAEA Propertymark

We are responding to the consultation and we are including specific questions in our March monthly Housing Market Report survey. Send your comments to our communications department.

Useful links

The Stamp Duty Land Tax: non-UK resident surcharge consultation
Consultation document
Housing Market Reports