SDLTM09960A | SDLT - increased rates for non-resident transactions: Completion and amendment of land transaction return where an individual becomes UK resident after return delivered - Effect of rules applying to spouses and civil partners of UK residents

Where the residence test for individuals set out at paragraph 4(1) is met after the SDLT return is submitted, then as explained at SDLTM09960, it is possible for the purchaser or purchasers to claim a refund of the surcharge paid.

Where an individual meets that test but their spouse or civil partner remains non-resident, then the special rules at paragraph 12 which apply to spouses and civil partners continue to apply to treat that non-resident spouse of a civil partner as also UK resident for the purposes of the transaction.

Example

Caroline and Alaric live in Malta. They jointly purchase a freehold residential property in England on 1 September 2022 for £675,000.

Between 1 September 2021 and 31 August 2022, neither Caroline nor Alaric speed any days in the UK. As such, both individuals are non-UK resident in relation to the transaction.

On 1 December 2022, both Caroline and Alaric arrive in the UK. Alaric remains in the UK until 30 August 2023, whilst Caroline returns to Malta on 1 May 2023.

As Alaric has spent 183 days in the UK between 1 September 2022 and 31 August 2023, he becomes UK resident in relation to the transaction during that period.

As Caroline and Alaric were living together on 1 September 2022, and neither were acting as a trustee of a settlement in relation to the transaction, Caroline is also treated as resident.

As both purchasers have become UK resident, they may claim a refund of the surcharge by amending their return.