Why are Foreigners Having to Pay Extra Stamp Duty?

The government have just published its consultation document on charging extra stamp duty on foreigners who buy UK property. The full SDLT non-UK resident surcharge consultation document is available to read here.

Some key headlines are:

– The purpose is to deter foreigners from driving up UK property prices

– Individuals with fewer than 183 days in the UK in the 12 months ending with date of purchase will be liable

– A refund claim available is if they then spend 183 days in the UK in the following 12 months

– Separate residence tests will be introduced for companies, trusts and other buyers

But in this new consultation, there is a major blind spot.

That being, where a non-UK resident off-plan buyer flips to a UK resident, no surcharge will be payable because the said flipper gets relief from SDLT. This is a major driver of price increases but is simply not addressed by those writing the condoc!

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