From 1 April 2021, non-UK residents buying residential property in England and Northern Ireland will need to pay a 2% surcharge.

On 6 January 2021, the UK Government published the Stamp Duty Land Tax (Administration) (Amendment) Regulations 2021, which update form SDLT1. 

For the first time, solicitors and others in the home-buying process will have to consider the concept of residence. Solicitors will need to obtain more information when filling out an SDLT return form.

  • The regulations include new questions on the SDLT return in connection with the introduction of the SDLT surcharge on non-UK residents purchasing residential property in England and Northern Ireland.
  • The regulations also provide for the removal of question 64 (agent’s DX number and exchange).
  • Buyers are now asked whether they are non-resident or a UK-resident close company controlled by non-residents, and if they are claiming Crown Employment Relief.

HM Revenue and Customs says that where the effective date of the transaction is before 1 April 2021, the buyer can use either the new form or the current version, provided the form is delivered before 1 May 2021.