In the October 2018 Budget, the government announced it would consult on the introduction of an SDLT surcharge on non-UK residents purchasing residential properties in England and Northern Ireland. The consultation is now open.
Any foreign investor in UK property who is unable to prove that they have been a resident in the UK for at least 183 days prior to their purchase will be charged an additional 1% on top of the relevant SDLT due on the property. This includes the enhanced rates payable on second and investment property.
The surcharge will apply to purchases of residential property made by non-UK resident individuals and non-natural persons including companies, trusts and partnerships.
The rules will also be applicable to joint purchasers where one of them is a non-UK resident.
A refund will be available to foreign buyers that can prove they have been a resident in the UK for 183 consecutive days following the purchase date, however.
The consultation period ends on 6 May 2019.