UK slaps a 2 per cent surchange on foreign property buyers but only from April 2021 – The National

UK slaps a 2 per cent surchange on foreign property buyers but only from April 2021 – The National

UK slaps a 2 per cent surcharge on foreign property buyers but only from April 2021. British chancellor Rishi Sunak announced the imposition of a two per cent upfront tax surcharge on non-resident property buyers in the UK as he unveiled his first budget on Wednesday.. The move fulfills a commitment in the ruling Conservative Party's election manifesto from last year, though the rate is slightly below the three per cent rate published during the 2019 election campaign.. "I'm confirming today that our manifesto promise to introduce a new stamp duty surcharge for non-UK residents will be introduced at a rate of 2% from April 2021," he said.. The two per cent is likely to be levied after the existing stamp duty taxes which are tiered alongside the property's value as well as a three percent levy for those buying a second home.. The top rate of stamp duty is 12 per cent on properties selling for more than £1.5 million.. The Conservative manifesto said the move would help rebalance the market in areas where overseas demand had skewed the property market.. Other rumoured incentives for first time buyer to enter the market, possibly funded by an exit tax on