Tom Evennett, Senior Partner, Private Client Services, comments on stamp duty:
“The Chancellor has landed on a compromise for a stamp duty land tax (SDLT) surcharge for non-residents in today’s Budget. In 2019 the Government consulted on a 1% SDLT surcharge for non-residents, while at the time of the election the Conservative party suggested that this surcharge might be as high as 3%. Ultimately, the Chancellor split the difference and announced that a surcharge of 2% will apply to purchases of property by non-UK residents with effect from 2021.
“Based on announcements at the time of the election, this surcharge will be in addition to the 3% surcharge for second homes – taking the possible top rate of SDLT for overseas buyers to 17%.
“The consultation in 2019 included some surprises in the definition of non-resident – for example those who spend less than six months in the UK in a tax year may find themselves subject to the surcharge. This could have an unexpected impact on mobile workers and on globally mobile entrepreneurs.
“The Red Book suggests that over five years the £140m raised by this measure will help to fund the support the Chancellor announced to address rough sleeping.”