The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
A 2% surcharge SDLT surcharge that applies to land transactions of residential property in England and Northern Ireland by non-residents comes into force with effect from 1 April 2021. The rates apply to purchases of freehold and leasehold property and to SDLT payable in respect of rents on the grant of a new lease.
The surcharge applies in addition to various other rates, including the additional dwelling supplement and the 15% higher rate for non-natural persons.
The existing residence rules for other taxes do not apply for SDLT. A separate residence test is introduced for SDLT, as discussed below. It is important to look at the detail of the test, as sometimes the outcome is counter intuitive. For example, a UK resident close company is considered non-resident for SDLT if it is controlled by non-resident individuals.
It is important to remember that if the transaction is eligible for an SDLT relief that reduces or exempts a charge to SDLT, this also applies to the non-resident surcharge. For a list of SDLT reliefs, see the Stamp duty land tax ― basic rules for companies guidance note.
The non-resident surcharge rules apply to land transactions with an effective date of 1 April 2021 onwards, even though Royal Assent to Finance Bill 2021 is unlikely to take place until July 2021. This means that advisers must apply the Finance Bill version of the legislation; it is not possible to delay the submission of the SDLT return and payment until after Royal Assent. The effective date of the transaction and the transitional rules are discussed in ‘Commencement’ at the end of this guidance note.
Helpfully for advisers, HMRC has already published full guidance on the non-resident surcharge on the GOV.UK website and in SDLTM09850.
The non-resident surcharge rate is 2% more than the rate payable by UK residents. It applies in addition to the various other rates (discussed above) that apply to acquisitions of residential property including:
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
Expenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and exclusively test. See the Wholly and
What is structures and buildings allowance (SBA)?From 29 October 2018, expenditure on constructing a non-residential building or structure, or in certain cases, expenditure on acquiring such a building or structure, qualifies for an SBA. The following note has been updated for the changes announced
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.