New surcharge for non-UK resident home buyers to tackle homelessness
A new 1% stamp duty land tax surcharge is to be introduced for non-UK resident homebuyers, with the suggested intention being that the revenue raised is used to reduce, and ultimately end rough sleeping in the UK. The government has committed to half rough sleeping by 2022 and to end it by 2027 and measures will need to be in place to enable this to happen
Evidence is indicating that the purchasing of properties by non-UK residents could be inflating the cost of property in the English and Northern Ireland housing markets. It is believed that the introduction of a 1% surcharge will help to control this and ultimately enable more people to own their own homes.
It is believed that the surcharge will be applied to any individual that is non-resident in the UK, along with some UK-resident companies that are managed by overseas shareholders. In the current outline, non-UK residents who purchase a property and then subsequently move to the UK will be entitled to a refund of the monies paid.
A consultation has been issued in respect of this proposed surcharge in connection with the details of the transactions to which it will apply and how it will work in practice. Encompassing how to define a non-resident, how the tax will apply to companies and how much revenue the charge will raise, the consultation will review all of the potentially affected areas.