5ALevy of surcharge land tax on residential land owned by foreign persons—2017 and subsequent land tax years

5A Levy of surcharge land tax on residential land owned by foreign persons—2017 and subsequent land tax years

5A Levy of surcharge land tax on residential land owned by foreign persons—2017 and subsequent land tax years

(1) Land tax is payable under this section in respect of residential land owned by a foreign person (surcharge land tax).

(2) In respect of the taxable value of all the residential land owned by the foreign person at midnight on 31 December in any year (commencing with 2016), surcharge land tax is to be charged, levied, collected and paid under the provisions of the Principal Act and in the manner prescribed under that Act for the period of 12 months commencing on 1 January in the next succeeding year at the rate of—

(a) in the case of all residential land owned by the foreign person at midnight on 31 December 2016—0.75% of that taxable value as assessed under the Principal Act, and

(b) in the case of all residential land owned by the foreign person at midnight on 31 December in the years 2017–2021—2% of that taxable value as assessed under the Principal Act, and

(c) in the case of all residential land owned by the foreign person at midnight on 31 December in the years 2022 and 2023—4% of that taxable value as assessed under the Principal Act, and

(d) in the case of all residential land owned by the foreign person at midnight on 31 December in any other year, commencing with 2024—5% of that taxable value as assessed under the Principal Act.

(3) Surcharge land tax is payable in addition to any land tax payable in respect of the residential land under the other provisions of this Act, and is so payable even if no land tax is payable under those other provisions.

(4) The Principal Act applies to surcharge land tax in respect of residential land owned by a foreign person subject to the following—

(a) surcharge land tax is payable as if the residential land were the only land owned by the foreign person,

(b) if the residential land is also owned by a person who is not a foreign person, the taxable value of the land is to be reduced to the proportionate value of the interest in the land of the foreign person,

(c) if the foreign person is a joint owner of the residential land, the person is to be individually (and not jointly) assessed and is liable in respect of the value of the person’s proportionate interest in the land as if the person were the owner of a part of the land in proportion to the person’s interest (and accordingly section 27 (2)–(4) of the Principal Act does not apply),