Buying From Abroad: Stamp Duty Changes
The house-buying process is very rarely a simple one but it can be even trickier for those prospective househunters who are trying to purchase property in the UK when they live abroad.
Over the last year, the housing market in England had to shut up shop, by and large, because of the pandemic and lockdown restrictions - which made it even harder for people to find the house of their dreams.
But after restrictions were eased following lockdown 1, domestic purchasers flooded the market once again, keen to move to pastures new and give themselves more living space.
A recent Financial Times article, however, explained that international buyers seemingly haven’t rushed back to the central London property market in the same way, no doubt because of limits on international travel.
And not only that, but as of April 1st, non-UK residents will have to pay an additional two per cent stamp duty charge on properties purchased in England and Northern Ireland… which may well be a big deterrent for anyone considering investing in property in the future.
Non-resident house purchasers will have to pay stamp duty land tax at standard rates, plus three per cent if the property is an additional one, as well as a two per cent non-resident surcharge.
Non-resident buyers will still be able to take advantage of the stamp duty holiday, which was brought in on July 8th and is set to run until September 30th 2021.
So, assuming that the purchase price on a property is above £500,000, the additional stamp duty payable will be nothing if the purchase takes place before June 31st this year, £12,5000 if the purchase takes place between July 1st and 30th September, and £15,000 thereafter.
It could prove beneficial to use HMRC’s stamp duty land tax calculator, which has been updated so that it covers both resident and non-resident buyers looking to purchase a house on or after April 1st.
And you can also get in touch with us here at Address Property Consultants if you do live overseas but are still keen to purchase a UK-based home. We are experienced London property consultants, and can easily help you bridge the gap between the property market you’re used to at home and what is available here in London.
Not only can we give you access to the whole market and support you as a single point of contact, we can also recommend builders, architects, interior designers and so on to help you really add value to your property. If you’d like to find out more, get in touch with us today.