As published on lawsociety.ie, Friday 26 March, 2021.
Professionals dealing with property law and property tax are being warned of an important change in the UK tax system, which is set to come into effect from 1 April.
The new measure will mean an additional 2% surcharge on existing Stamp Duty Land Tax (SDLT) rates for those who purchase residential property in the UK but are not UK residents.
The UK tax authority, HMRC, also points out that the change will also apply to some UK-resident companies controlled directly or indirectly by non-resident persons.
The surcharge will apply to both freehold and leasehold properties in England and Northern Ireland.
HMRC is reminding professionals to make their clients aware of the impending change if they could be affected, particularly considering the length of time that property purchases can take to complete.
The tax body points out that the SDLT rules include a test of a person’s residence status.
This requires an individual to be present in the UK for a set number of days by reference to the effective date of the transaction.