Haslers Chartered Accountants warns overseas property buyers about costly proposals to change stamp duty

Haslers Chartered Accountants warns overseas property buyers about costly proposals to change stamp duty

Chartered Accountancy firm Haslers has said that non-resident investors looking to buy property in the UK must be aware of proposals that could see them paying more Stamp Duty Land tax (SDLT).

According to recent consultation documents released by the Government, non-resident investors looking to buy land and property for residential use could pay an additional one per cent SDLT surcharge.

The new rule, which is currently being considered, will affect purchases of residential land and property in England and Northern Ireland for those individuals who spend spent fewer than 183 days in the UK (not just England and NI) in the 12 months ending with the date the transaction occurs.

Companies purchasing property will also be considered resident in the UK if they are incorporated in the UK, or their central management and control is in the UK, at the time they acquire the residential property.

The new surcharge will be added to existing SDLT bills, which include the three per cent additional dwelling surcharge and the 15 per cent surcharge on high-value properties.

Worryingly, Haslers fear that this could also affect those looking to return to the UK who may not fit the residency rules, but want to make a future life in the UK, as well as those looking to invest and improve properties for those looking to rent.

Paul Reynolds, Tax Partner at Haslers, said: “Everyone can appreciate that the Government wants to make homes affordable for more people and that to some degree investors, both domestic and those overseas, have driven up prices in places like London and the South East.

“However, there are many genuine landlords who want to provide affordable rented accommodation who are going to be penalised by these rules, as well as those non-resident workers who are looking to move to the UK.”

Paul said that while the new rules were yet to be enacted, it was important that investors and property purchasers considered their impact and plan ahead.

“There are a number of ways that investors can help to mitigate some of the costs involved in purchasing a property, but it is essential that they seek expert advice in advance to make the most of the opportunities on offer to them.”

To find out more about the changes to SDLT speak to Haslers by calling 020 8418 3333 or visiting www.haslers.com

 

Haslers Chartered Accountants warns overseas property buyers about costly proposals to change stamp duty

Haslers Chartered Accountants warns overseas property buyers about costly proposals to change stamp duty
Haslers Chartered Accountants warns overseas property buyers about costly proposals to change stamp duty

Haslers Chartered Accountants warns overseas property buyers about costly proposals to change stamp duty