A new 2% surcharge is to be introduced from 1 April 2021 for all purchases of residential property by non-UK residents. This is in addition to the current surcharge that applies to additional dwellings or those purchased by a non-individual.
Refunds of the surcharge will be available for those who become resident after their purchase.
Stamp duty
A change has been made to the calculation of ‘chargeable consideration’ where there is a share for share exchange. This is designed to stop arrangements known as swamping. Previously, you valued the consideration based on the market value of the shares that were issued in the acquiring company. If the number of shares issued was low, the result was a low stamp duty charge.
With effect from 1 April 2020, the chargeable consideration will be the higher of the market value of the shares issued or the value of the transferred asset.