Tuesday, November 26, 2019
The Conservative Party in the UK has announced that it would introduce a three percent surcharge on non-resident individuals and companies who acquire UK property if it wins the upcoming election.
The Party said the Stamp Duty Land Tax measure could raise GBP120m (USD154.6m), which would be used to fund measures for the homeless. It is expected to be levied on about 70,000 purchases a year.
The surcharge would be levied on top of all other stamp duty payable, including the higher levels of stamp duty introduced in April 2016, on second home and buy-to-let purchases. This starts at a combined three percent for homes valued below GBP125,000, with five percent on the next portion between GBP125,001 and GBP250,000, eight percent on the portion between GBP250,001 and GBP925,000, 13 percent on the portion between GBP925,001 and GBP1.5m, and 15 percent above that threshold.
The Chief Secretary to the Treasury, Rishi Sunak, said: "Evidence shows that by adding significant amounts of demand to limited housing supply, purchases by non-residents inflate house prices. That is why we are introducing a higher rate of stamp duty for non-UK residents that will help to address this issue and could raise up to GBP120m."