If you are not UK resident, you pay a 2% Stamp Duty Land Tax (SDLT) surcharge on top of the normal rates when you buy residential property in England or Northern Ireland. On a buy-to-let or any additional property you also pay the higher rate for additional dwellings, currently 5%, so the two stack. Scotland and Wales work differently. Here is the plain-English version.
What is the non-resident surcharge?
It is an extra 2% of SDLT, introduced in April 2021, charged on residential purchases by non-UK residents in England and Northern Ireland. It is added to each of the standard rate bands and applies to the whole purchase price, not just the part above a threshold.
Who counts as non-resident?
For an individual, you are non-resident for this tax if you were not in the UK for at least 183 days during the 12 months before your purchase. On a joint purchase, if any one buyer is non-resident, the surcharge applies to the whole transaction. Companies and trusts have their own tests. Note this is a stamp duty test, separate from your income tax residence.
How it stacks with the additional-dwelling rate
Most investors are not buying their only home, so the higher rate for additional dwellings applies as well, currently 5%. For a non-resident investor the 2% surcharge sits on top of that. In other words, a non-resident buying a rental can pay meaningfully more in stamp duty than a UK resident buying their main home. The exact figure depends on the price and the current bands, which is why we model it into every appraisal.
Scotland and Wales are different
This is the part many guides skip. Scotland uses Land and Buildings Transaction Tax (LBTT), not SDLT, and does not levy the 2% non-resident surcharge, although it has its own Additional Dwelling Supplement. Wales uses Land Transaction Tax (LTT). Since much of our work is in Scotland, this matters: the 2% surcharge you read about is an England and Northern Ireland tax, and it may not touch your deal at all.
Can you get it back?
In some cases, yes. If you later meet the UK residence test within the relevant period after the purchase, you may be able to reclaim the 2% surcharge. The conditions are specific and time-limited, so take advice before relying on it.
This guide is general information, not tax advice. Stamp duty rates, bands and rules change, and they differ across England, Northern Ireland, Scotland and Wales. Check the current position on GOV.UK or the relevant authority, and take your own professional advice.
Common questions
Do non-residents pay extra stamp duty in the UK?
Yes. In England and Northern Ireland, non-UK residents pay a 2% Stamp Duty Land Tax surcharge on top of the normal rates when buying residential property. On a buy-to-let or other additional property the higher rate for additional dwellings also applies, so the charges stack.
How much is the non-resident stamp duty surcharge?
The surcharge is 2%, added to each of the standard SDLT rate bands, and it applies to the whole purchase price. It has been in force since April 2021. Always check the current bands on GOV.UK, as rates change.
Does the non-resident surcharge apply in Scotland?
No. Scotland uses Land and Buildings Transaction Tax (LBTT), not SDLT, and does not levy the 2% non-resident surcharge, though it has its own Additional Dwelling Supplement. Wales uses Land Transaction Tax. The 2% surcharge is an England and Northern Ireland tax.
Who counts as a non-resident for stamp duty?
For an individual, you are treated as non-resident if you were not present in the UK for at least 183 days in the 12 months before the purchase. On a joint purchase, if any buyer is non-resident the surcharge applies to the whole transaction. Companies have their own test.
We build the right stamp duty into every appraisal before you commit, and we tell you which jurisdiction's rules apply to your deal. No surprises at completion.
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