Budget 2020 Intention of non-resident stamp duty changes to be applauded but details need more focus
Intention of non-resident stamp duty changes
Commenting on The Chancellor’s announcement that a 2% stamp duty land tax surcharge (SDLT) would be introduced for non-UK residents purchasing UK residential property, Peter Beckett, Real Estate Tax Partner, KPMG UK says.
“The intention here has to be applauded, the Government hopes to make home ownership more affordable for UK residents and any revenue raised will be put towards ending rough sleeping. This will not have come as a surprise to anyone in the real estate market. A non-resident surcharge was a Conservative manifesto pledge and Theresa May’s government had consulted on a 1% non-resident surcharge in February 2019. Whilst the commitment is to be applauded, the 2% surcharge is not to take effect until 1 April 2021 so the details are unlikely to have been finalised. Areas of difficulty previously included what ‘non-resident’ should mean for SDLT purposes and whether overseas corporate investors should be targeted where they are funding the building of new homes.”
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