_Six-month countdown: Overseas buyers must act now to save before new UK stamp duty in 2021

From October, there are less than six months until the introduction of a 2% stamp duty land tax (SDLT) surcharge on the acquisition of residential property by non-UK residents.

Taking into the account the average length of time it takes to complete on a property, there is a closing window of opportunity for buyers who wish to transact before the rule change and benefit from a saving.

The change coincides with the end of the current stamp duty holiday, which was announced in July and raised the tax-free threshold for the tax to £500,000. The maximum saving during the holiday period is £15,000.

Non-UK residents will save on both counts if they complete before 31st March next year.

By acting before the 2% surcharge is introduced and during the holiday period, a buyer of a £1 million property will save £35,000 in stamp duty. For a £5 million property, the equivalent saving is £115,000.

The below table charts the savings if overseas buyers complete before 31st March, 2021. You can also use our Overseas Buyer Stamp Duty Calculator.

We also look at the potential saving non-UK residents will benefit from if transacting on one of these Prime Central London homes in the coveted postcodes of Knightsbridge and Mayfair, illustrating the significance if they transact before both deadlines. Search for property in the UK or contact one our offices.

3-bedroom penthouse in Lowdnes Square - Knightsbridge

Asking price: £13,500,000

Combined SDLT saving: £285,000

Spread over two floor this 3-bedroom Knightsbridge penthouse apartment spans the top floors of this heritage stucco-fronted building overlooking one of SW1's prestige squares.

Interior designed and with two roof terraces offering film-worthy vistas across Lowdnes Square Gardens and the London skyline, this is a very special space for those that value a prime, elevated position in an a upscale postcode.

4-bedroom house in Half Moon Street - Mayfair 

Guide price: £15,000,000

Combined SDLT saving: £315,000

Over the centuries, this elegant Mayfair Grade II townhouse has represented the aspirations of many of London's well-to-do in an area that has never lost vogue.

Spanning four floors, period details rub shoulders with state-of-the-art conveniences such as a cinema room, internal lift and leisure facilities that include a steam room and gym. This super-home has plenty of entertaining space which includes a generous roof terrace for outdoor relaxing.

3-bedroom flat in Mayfair's premier mansion block 

Guide price:£6,950,000

Combined SDLT saving: £154,000

A prestigious address on one London's best streets will appeal to new owners of this 3-bedroom Mayfair apartment spanning the third and fourth floors of a quintessentially British red brick apartment block. 

The starring role here are the views over Mount Street alongside cavernous ceiling heights, fantastic entertaining space and generous-sized bedrooms making it an ideal base for families when visiting the capital. 

3-bedroom apartment on a private road in Knightsbridge

Guide price:£8,000,000

Combined SDLT saving: £175,000

With a footprint of 2,256, sq ft this 3-bedroom raised ground floor apartment occupies a prime spot in a prestigious apartment block on a private road in Knightsbridge.

The apartment benefits from high ceilings, a double reception room, underfloor heating, air conditioning and original period features. There are also three large bedroom suites with marble bathrooms. 

Set behind a gated entrance, Rutland Court is in a quiet and secluded location offering two off street parking spaces (by separate negotiation), 24-hour security and a gym.

3-bedroom flat in Berkley Square - Mayfair

Guide price: £9,500,000 

Combined SDLT saving: £205,000

Spanning 2,142 sq ft, this Berkley Square penthouse represents a unique opportunity to acquire the only penthouse apartment in this prestige building overlooking one of London's iconic squares. 

A key draw here is the roof terrace which spans the entire width the building and offers cinematic views across leafy Berkley Square and the West End beyond. 

2-bedroom apartment in new development Burlington Gate - Mayfair

Guide price: £5,500,000

Combined SDLT saving: £125,000

Sitting in the heart of this upscale London postcode, Burlington Gate - one of the first newly constructed buildings in the area - is a freshly launched prestige development moments from the Royal Academy of Arts and Burlington Arcade.

This two-bedroom apartment represents an excellent opportunity to own a slice of Mayfair and a coveted central London address.

The apartment offers elegant living space with a large open plan living and kitchen area which is perfect for entertaining, 2 double bedrooms and 2 bathrooms.

The spa and state-of-the-art gymnasium will be exclusively managed by Bodyism offering a 24 hr, air conditioned fitness facility along with sauna and treatment room. In addition to the concierge service there is secure underground parking available for all residents.

3-bedroom flat in South Audley Street - Mayfair

Guide price:£5,950,00

Combined SDLT saving: £134,000

Set on the third floor of a traditional red brick period building, this lateral apartment of 1,933 sq ft has classic good looks with large bay windows, lofty ceiling height and many period accoutrements including authentic fireplaces, enriched cornicing and wooden flooring.

Modern conveniences include Siemens appliances and multi-channel light dimming systems. Three bedrooms provide plenty of accommodation for families visiting from abroad. South Audley Street is an architecturally and historically significant shopping street in Mayfair lined with upmarket boutiques and a very special place to call home.  

Each year we help overseas buyers find a UK property that's right for them. Knight Frank markets some of the UK's very best homes - from country cottages to townhouses, new build apartments and central London penthouses - start your property search today.