Stamp Duty Land Tax for non resident

moneysavvy35

Hello. I am getting such conflicting advice and wondered if someone can help. 
Situation - uk citizen living abroad on 2year work visa. buying a property in uk as buy to let (only way to get on the ladder at the moment - its complicated)
1st time buyer, dont own any other property.
I believe person only has to pay 2% non resident stamp duty, but someone is telling me about an additional 3% surchage that is to be added. which is due to owning it as buy to let and not living in it. Can someone here advise please. its so confusing. Thanking you in advance

Sam_666

What makes you think that you are not UK tax resident? Have you researched SRT?
Anyways, 1sec on google gives you answer to your Q.
https://www.gov.uk/guidance/rates-of-stamp-duty-land-tax-for-non-uk-residents

moneysavvy35

Sam_666 said:

What makes you think that you are not UK tax resident? Have you researched SRT?
Anyways, 1sec on google gives you answer to your Q.
https://www.gov.uk/guidance/rates-of-stamp-duty-land-tax-for-non-uk-residents

Not a UK Tax Resident, as wont have been in the UK for at least 183 days by purchase date. Done the calculator many times. And its coming out as 2% which is correct as far as I am concerned but solicitor is saying its £5500. which is 5%. Just trying to get clarification from maybe someone who deals with Tax.

poseidon1

moneysavvy35 said:

Sam_666 said:

What makes you think that you are not UK tax resident? Have you researched SRT?
Anyways, 1sec on google gives you answer to your Q.
https://www.gov.uk/guidance/rates-of-stamp-duty-land-tax-for-non-uk-residents

Not a UK Tax Resident, as wont have been in the UK for at least 183 days by purchase date. Done the calculator many times. And its coming out as 2% which is correct as far as I am concerned but solicitor is saying its £5500. which is 5%. Just trying to get clarification from maybe someone who deals with Tax.

Obviously you don't know how to use the hmrc calculator properly.

On a £200k purchase as a non resident landlord the sdlt is indeed £5500. 

The first £125k is at 2% with the balance at 4%. This surcharge on non resident buyers was introduced back in 2021 by the Tories to specifically penalise 'foreign' buyers.

A UK resident 1st time landlord with no other property would pay just £1,500 on the same purchase ie 1st £125k at zero % and the balance at 2%.

 Evidently you have been running your calculations on the basis you are UK tax resident, despite strenuously denying you are not.

moneysavvy35

poseidon1 said:

moneysavvy35 said:

Sam_666 said:

What makes you think that you are not UK tax resident? Have you researched SRT?
Anyways, 1sec on google gives you answer to your Q.
https://www.gov.uk/guidance/rates-of-stamp-duty-land-tax-for-non-uk-residents

Not a UK Tax Resident, as wont have been in the UK for at least 183 days by purchase date. Done the calculator many times. And its coming out as 2% which is correct as far as I am concerned but solicitor is saying its £5500. which is 5%. Just trying to get clarification from maybe someone who deals with Tax.

Obviously you don't know how to use the hmrc calculator properly.

On a £200k purchase as a non resident landlord the sdlt is indeed £5500. 

The first £125k is at 2% with the balance at 4%. This surcharge on non resident buyers was introduced back in 2021 by the Tories to specifically penalise 'foreign' buyers.

A UK resident 1st time landlord with no other property would pay just £1,500 on the same purchase ie 1st £125k at zero % and the balance at 2%.

 Evidently you have been running your calculations on the basis you are UK tax resident, despite strenuously denying you are not.

thank you for your commenr.. however it always best to ask clarifying questions before making assumptions. if you asked how much thr propery value was I would have told you as admittedly I did not state thr amount. in my OP. The property value is £110k

NorthYorkie

The difference between the two figures of Duty quoted hinge on whether you would qualify for 'First time buyers' relief'. This does not simply depend on whether you have ever owned any property before, but also on whether you intend to occupy the new property as your main residence.

The SDLT Manual at SDLTM29831 has a useful comment about 'intention';

"It is not necessary that the purchaser must occupy the property immediately following purchase. At the time of the land transaction, there must be a clear intention to occupy the dwelling as the purchaser’s only or main residence and the fact that circumstances make it either impossible or impractical to immediately occupy the dwelling do not prevent relief being due." (My emphasis).

How that clear intention can be demonstrated will depend on the particular circumstances. It seems to me that it would include only granting a tenancy agreement on the new property which ends before your overseas contract terminates, so that you are able to occupy the property as your main residence on your return to the UK.