Stamp duty non UK residents

Combenew

Hi can anyone clarify the rules on non UK residents and second properties.

Does the second property charge apply if that property is not in the UK?

JGB1955

AIUI the answer is 'Yes', assuming the share in the overseas property is valued at more than £40K.

Bookworm225

if you are buying a UK property and already own an overseas one then yes, higher rate SDLT applies to the UK purchase. (And don't ask how they find out if you try to hide it) 

Condition C is that the individual purchaser owns, or is treated as owning, a major interest in another dwelling, anywhere in the world, at the end of the day that is the effective date of the transaction. That major interest must have a market value of £40,000 or more and not be reversionary on a lease with more than 21 years until expiry 
SDLTM09780 - SDLT - higher rates for additional dwellings: Condition C - general - HMRC internal manual - GOV.UK

Finance Act 2003


if you are buying overseas then obviously UK taxes do not apply to an overseas purchase, local taxes would apply instead (if there are any)

_Penny_Dreadful

Combenew said:

Hi can anyone clarify the rules on non UK residents and second properties.

Does the second property charge apply if that property is not in the UK?

Where in the UK are you buying? England and Northern Ireland have SDLT, Wales has LTT and Scotland has LBTT. Different legislation with different rules for non-residents. 

All 3 do count property, no matter where it is in the world, if your share is worth at least £40,000 when determining if the higher rate is due. England and Northern Ireland also charge non-residents an extra 2% SDLT. 

michael1234

Bookworm225 said:

if you are buying a UK property and already own an overseas one then yes, higher rate SDLT applies to the UK purchase. (And don't ask how they find out if you try to hide it) 

I think the answer is they won't but it might depend on which country.