Caught in a completion trap: Charles Miéville and Elizabeth Small write for ePrivateClient
Residential Property Partner, Charles Miéville, and Tax Partner, Elizabeth Small, have written an article for ePrivateClient on non-resident SDLT. The article, entitled 'Caught in a completion trap', provides crucial information for non-UK residents investing in English property.
In their article, they explain that 'Non UK tax resident buyers who have already or are about to exchange contracts should proceed with caution'. NRSDLT will apply a 2% SDLT surcharge on English residential property purchased on or after 1 April 2021 by a non-UK resident.
Charles and Elizabeth warn that a completion trap may occur on contracts exchanged on or after 11 March 2020 but not due to complete until post 1 April 2021, resulting in additional NRSDLT charges not previously budgeted for.
A further caution is given to buyers who have completed prior to 10 March 2020. For contracts that have been modified on or after 11 March 2020, the original contract may risk losing its protection and fall under the new NRSDLT rules.
The full article can be found here, behind the paywall.