For individuals holding pre-settled status under the EU Settlement Scheme, purchasing property in the UK may offer distinct financial advantages, particularly regarding Stamp Duty Land Tax (SDLT).
One of the most significant benefits is the potential to mitigate the additional 2% SDLT surcharge applied to non-UK residents. This exemption can represent substantial savings, particularly in high-value transactions, and provides pre-settled status holders with a financial edge in the competitive UK property market. Unlike other foreign buyers, those with pre-settled status could be treated as UK residents for SDLT purposes provided that they have spent 183 days in the UK in the year before completion. This will assist in reducing overall costs and allowing more capital to be directed towards the purchase or investment. If you don’t quite make up the 183 days before completion, you can claim a refund of the 2% payment if you spend 183 days out of a period of 365 days in the UK in the first year after your completion date.
This advantage, combined with the stability pre-settled status offers in accessing competitive mortgage products and navigating legal requirements, makes it an attractive position for property buyers. However, expert legal advice is essential to ensure eligibility and compliance with SDLT rules, safeguarding these savings while streamlining the purchasing process.
For those with pre-settled status, understanding and leveraging this exemption can be a pivotal step towards securing a future in the UK property market while minimising costs.
If you require immigration advice, please contact Jayesh Jethwa using the form below. If you require residential real estate advice, please contact Meera Malde using the form below.
