The Treasury has launched consultation on an additional property tax for non-UK residents buying in England and Northern Ireland.

The prosed 1% stamp duty surcharge was announced by the Prime Minister, Theresa May, last year and confirmed by the Chancellor, Philip Hammond, in his Autumn 2018 Budget.

Proceeds of the surcharge would be used to tackle homelessness, as part of a government pledge to ending rough sleeping by 2027.

Devolved parliaments in Scotland and Wales will decide whether to introduce a similar property tax in their countries.

According to Mel Stride, Financial Secretary to the Treasury and Paymaster General, the move followed evidence that non-UK resident buyers could be affecting the housing market.

He said: “The UK is and will remain an open and dynamic economy, but some evidence shows that non-UK resident buyers of UK property could be inflating house prices.

“A 1% surcharge could help more people own their own homes in the future, and its proceeds will go towards tackling rough sleeping, boosting our plan to halve the numbers of rough sleepers by 2022.”

Under current proposals, the charge would be payable by any buyer, non-resident in the UK, including UK companies controlled by overseas shareholders.

The consultation will seek views on how non-residents will be defined and how the surcharge will apply to companies.

Crown employees working abroad and military service personnel would not pay the surcharge.

People who buy a residential property, and subsequently move to the UK, would be able to claim a refund.

Once the consultation is complete, an announcement will be made about how much the surcharge is expected to raise.

Read more about this story on the Property Reporter and Property Wire websites.

About the author

Nicolas Holmes

Nick joined Robert Holmes to inject fresh ideas and help grow the New Homes department of Robert Holmes as well as helping to inject technology into the business and to grow its client base. Together with one of the Directors Nick is in charge of all Development opportunities that Robert Holmes deals with along with sales. Aged 40, he provides succession together with the two existing directors. Nick has always been focused on building client relationships and sales. He built up his own gallery in Chelsea, where he had a loyal following of customers and artists.

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