Following the recent global economic freeze, with different repercussions in different countries, the UK is considering an exemption from Stamp Duty Tax.

In fact, many trade associations, such as the National Federation of Builders and the Royal Institution of Charted Surveyors, are expressing to the Boris Johnson-led government the need for a suspension of the tax payment.

Previous articles have explained the same, its applicability and exceptions on a case-by-case basis; the aim of the suspension is to revive the property market after the lockdown.

Events:

Immediately after the UK’s exit from the European Union, the London property market had seen strong increases in terms of transactions and demand; this was due to the fact that the period of uncertainty was finally over.

Unfortunately, with the advent of Covid-19 came a total freeze, one would say on the surface, but in reality this is not the case. In fact, many foreign investors expressed interest in investing in London during this period as well.

Certainly, taking advantage of the uncertainty of the future to be able to extract better prices than a few months ago, the recent acquisition of the Ritz Hotel by a direct family member of the Emir of Qatar made headlines.

The requests from investors are also for the purchase of single property units in exclusive areas of London, such as Mayfair or Knightsbridge. We can say that history teaches and repeats itself.

The government is currently putting in place further measures to address the needs of the country and the Stamp Duty Tax exemption for home buyers will almost certainly be approved. Its subjective applicability and time limit will have to be seen.

Indirect confirmation comes from the fact that, despite the period, the government has let the EU know that it must resume negotiations on the trade agreement and that it has no intention of extending the transition period; this is with the aim of being able to give new and certain rules to all investors from 1 January 2021.

Next we will discuss the strategies and government reform acts, under consideration in Parliament, which aim to make the UK even more attractive from an investment perspective.

Some of these can be found at: http://services.parliament.uk/bills/