SDLTM09850A | SDLT - increased rates for non-resident transactions: Introduction - section 75ZA and Sch 9A FA2003

At Budget 2020, the Government announced a 2% Stamp Duty Land Tax ("SDLT") surcharge on purchases of dwellings in England and Northern Ireland made by non-UK resident purchasers, including certain UK resident companies controlled by non-residents. The surcharge applies to purchases with an effective date on or after 1 April 2021.

The surcharge applies on top of all other residential rates of SDLT, including the rates which apply to first time buyers, purchases of additional dwellings, purchases made by companies and purchases where the consideration exceeds the higher rate threshold. It applies to purchases of both freehold and leasehold property, as well as increasing SDLT payable on rents on the grant of a new lease.

The surcharge will not apply to purchases of non-residential property or mixed transactions (apart from where a Multiple Dwellings Relief claim was made for a transaction which completed or substantially performed before 1 June 2024 – see SDLTM29901 ). Various reliefs from the surcharge are available. Subject to certain conditions being met, refunds are also possible.

The Finance Bill 2021 will amend Finance Act 2003 by inserting section 75ZA and Schedule 9A.