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14 December 2020

Dudley Building Society is calling on all advisers with expat and foreign investor customers purchasing property in the UK, to press ahead urgently to secure completion before 31st March 2021 or run the risk of customers paying a massive surcharge.

Expats who fail to complete property purchases in the UK before the 31st March will face higher stamp duty levies than residents.

Intermediary focussed Dudley, which is an active provider in the expat sector, is concerned that the current focus is on domestic borrowers beating the re-establishment of stamp duty on April 1st, but the 2020 budget announcement also included an extra 2% levy on property bought and completed by expats after 31st March.

According to Commercial Director, Sam Ward, the 2% levy is not the only shock in store for expats who are not intending to occupy the property.

She said, “With all the other news surrounding COVID-19, it would be easy to forget that the 2020 Budget also stated that the 3% levy on second homes will also apply to expat purchases after the 31st March, so that overall, completing from April 1st, expats will be paying 5% more than the standard rates. A double blow.

Sam added, “The property market is booming at present and expats are keen to maintain and establish a property foothold, even if they do not intend to live in the UK at present. Advisers whose expat customers complete before the 31st March benefit from the postponement of the standard rate of stamp duty in the same way as everyone else, but now is the time to act before what could be up to an extra 5% levy is introduced in April.”