Non-Resident Property Investors UK Stamp Duty Tax Schedule

Brett Alegre-wood
January 23, 2023

Stamp duty is a tax that is charged when you purchase a property, and it is important to understand how it works to effectively plan your investments. Non-resident property investors in the UK must also understand how stamp duty affects them, and the UK stamp duty tax schedule. In this article, we will discuss what stamp duty is, who pays it, why it is important for non-resident property investors, the stamp duty rules for non-resident property investors, the stamp duty tax schedule for non-resident property investors, how to calculate the stamp duty tax for non-resident property investors, resources for stamp duty tax advice and guidance, how Gladfish Property can help with the investment process for non-resident investors in UK property, and conclude with a summary.

What is Stamp Duty Tax?

Stamp duty, also known as Stamp Duty Land Tax (SDLT), is a tax that is applied to the purchase of land and property in the UK. The tax rate varies depending on the price of the property, the location of the property, and the type of property you are purchasing. Stamp duty is usually paid by the purchaser, but there are some exceptions in the case of corporate and non-resident property investors.

The amount of stamp duty tax payable depends on the purchase price of the property and the type of property being purchased. In most cases, the rate of stamp duty is 0% up to a certain threshold, then increases on a sliding scale. If a property is bought for over £125,000, the rate of stamp duty will be 1% on the amount over £125,000 and 2% on the amount over £250,000.

Standard Schedule (for all Investors)

Purchase Price

% Stamp Duty

Up to £250,000

No Tax Payable

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The next £675,000 (the portion from £250,001 to £925,000)

5%

The next £575,000 (the portion from £925,000 to £1.5million

10%

The remaining amount (the portion above £1.5million)

12%

Second Property Stamp Duty Levy

If you already own a property in England and Wales then you will need to add an additional levy of 3% onto the stamp duty. 

Purchase Price

% Stamp Duty

If you own another property

3%

Who pays Stamp Duty?

In the UK, stamp duty is usually paid by the purchaser of the property, but there are some exceptions. For example, corporate investors and non-resident property investors may be exempt from paying stamp duty.

Non-resident property investors are those who buy a property in the UK but are not resident there. This could be a foreign investor looking to purchase a UK property, or a UK citizen living overseas and looking to invest in a property back in the UK.

Why is Stamp Duty important for non-resident property investors?

For non-resident property investors, understanding the stamp duty rules and the stamp duty tax schedule is essential to make sure they are not paying too much tax. Non-resident property investors are usually exempt from paying stamp duty, but they must still be aware of the rules and regulations to ensure they are not paying more than they need to.

The UK stamp duty tax schedule is slightly different for non-resident property investors, as the rate of stamp duty is higher for them. 

Non-Residents Stamp Duty Levy

Purchase Price

% Stamp Duty

All Amounts

2% on top of other Stamp Duty Taxes. 


It is important to note that the stamp duty tax rate for non-resident property investors is only applicable to properties purchased in England and Northern Ireland. Scotland and Wales have their own stamp duty regulations, so it is important to understand the rates applicable in those countries before purchasing a property.

Stamp Duty rules for non-resident property investors

Non-resident property investors are required to pay stamp duty on all properties purchased in England and Northern Ireland. 

In addition, non-resident property investors must submit a ‘Non-resident Landlord’s Return’ form to HMRC within 30 days of completion of the purchase. This form is used to declare the property purchase and the stamp duty paid. Failure to submit this form can result in fines and other penalties.

It is also important to note that any non-resident property investor who buys a property in the UK must appoint an agent to act on their behalf. This agent will be responsible for managing the property and dealing with any tax issues, such as income tax.

How to calculate the Stamp Duty Tax for non-resident property investors

The Stamp Duty Tax for non-resident property investors can be calculated using the Stamp Duty Calculator. This calculator is available on the HMRC website, and allows you to calculate the amount of Stamp Duty that you need to pay on your property purchase.

To use the calculator, you will need to enter the purchase price of the property, the date of purchase, and select the country where the property is located. The calculator will then calculate the Stamp Duty Tax that you need to pay.

Resources for Stamp Duty Tax advice and guidance

The HMRC website is a great resource for Stamp Duty Tax advice and guidance, as it contains all the relevant information about the rules and regulations. In addition, there are a number of other resources available to help non-resident property investors understand the Stamp Duty Tax system, such as online forums and blogs.

How can Gladfish Property help with the investment process for non-resident investors in UK property

Gladfish Property is a leading property investment consultancy, providing specialist advice and guidance to non-resident property investors. Our team of experienced property investment professionals can help with all aspects of the investment process, from finding the right property to understanding the rules and regulations related to Stamp Duty Tax.

We can help non-resident property investors to understand the rules and regulations related to Stamp Duty Tax, and calculate the amount of Stamp Duty that they need to pay. Our property management arm, Ezytrac Property can also provide guidance on how to submit the ‘Non-resident Landlord’s Return’ form to HMRC, and help to ensure that all requirements are met.

Call the team to discuss cash flow and how stamp duty might impact your investment decisions.

Want to learn more about investing in the UK?

Stamp duty is an important consideration for non-resident property investors in the UK, and understanding the rules and regulations surrounding the Stamp Duty Tax is essential for successful investments. The UK stamp duty tax schedule for non-resident property investors is slightly different from that for resident property investors, and it is important to understand the rate of stamp duty applicable in each country.

Gladfish Property can provide expert advice and guidance to non-resident property investors, helping them to understand the rules and regulations and calculate the amount of Stamp Duty Tax they need to pay. Our team of experienced property investment professionals can also help with all aspects of the investment process, from finding the right property to submitting the necessary paperwork.

If you are a non-resident property investor looking to purchase a property in the UK, make sure you get expert advice and guidance to ensure you understand the stamp duty rules and regulations, and make the most of your investment. Speak to the team on 02079236100.


Tags

non-resident investors, overseas investors, stamp duty tax


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