Non-UK Resident Stamp Duty Explained

Who this page is for

If you are buying UK property as a non-UK resident, the stamp duty bill will be higher than for an equivalent UK-resident buyer. This page explains why, by how much, and what options you have.

This applies to British expats living abroad, foreign nationals buying UK property, and anyone else whose UK presence falls below the residency threshold in the year before purchase.

For the exact figure on your purchase, use the stamp duty calculator, which handles all surcharge combinations.

What the 2% surcharge is

Introduced in April 2021, the non-UK resident SDLT surcharge adds 2 percentage points to the Stamp Duty Land Tax rate that applies to each portion of the purchase price. In practical terms, this means the total SDLT bill increases by an amount equivalent to 2% of the purchase price.

On a £300,000 property, the surcharge adds £6,000 to the SDLT due. On a £500,000 property, it adds £10,000. This is on top of whatever standard SDLT would otherwise apply, and on top of any additional dwelling surcharge if the property is a buy-to-let or second home.

The surcharge applies in England and Northern Ireland. Property in Scotland is subject to Land and Buildings Transaction Tax (LBTT), and property in Wales is subject to Land Transaction Tax (LTT). Neither LBTT nor LTT currently includes a non-resident surcharge.

Are you non-UK resident for SDLT purposes?

SDLT uses its own residency test, which is separate from your UK income tax residency status.

The test is straightforward: if you were present in the UK on fewer than 183 days in the 12-month period ending on the completion date of your purchase, you are non-UK resident for SDLT purposes and the 2% surcharge applies.

What counts as a day in the UK: you must be in the UK at midnight. Days of arrival typically count. Days of departure typically do not. Regular short visits, even of a week or two at a time, accumulate. If you visit the UK frequently for family or business reasons, the total should be calculated before assuming you fall below 183 days.

If you are close to the 183-day boundary, the timing of a purchase completion can affect whether the surcharge applies. A solicitor or tax adviser can confirm your position.

How surcharges stack

SDLT has several distinct surcharge layers, and they combine for non-resident buyers purchasing investment property.

Standard SDLT. The base SDLT rate applies to all residential property purchases. The rate rises through bands as the purchase price increases.

Higher rates for additional dwellings (HRAD). A separate surcharge applies if you already own another property anywhere in the world (in most cases), or if you are buying an investment property. This surcharge adds a further percentage to the base rate at each band.

Non-resident surcharge. An additional 2 percentage points on top, if you do not meet the UK residency test described above.

For a non-UK resident buying a buy-to-let property in England, all three layers apply together. The total SDLT is materially higher than for a UK-resident buyer of the same property. Use the stamp duty calculator to model your specific purchase.

Joint purchases: mixed residency

If you are buying with a partner or spouse, and one of you is UK resident while the other is not, the 2% non-resident surcharge applies to the whole transaction.

There is no partial relief or apportionment for joint applications where residency statuses differ. If any buyer is non-UK resident, the surcharge applies as if all buyers were non-UK resident.

This catches a common scenario: a UK national living abroad buying UK property jointly with a UK-resident partner or family member. The couple as a whole pays the non-resident surcharge.

For more on mixed-residency mortgage applications, see the joint mortgage page, which covers the income treatment and lender pool for these cases.

First-time buyers and non-residents

First-time buyer SDLT relief is available to non-UK residents who are genuinely buying their first UK property and who otherwise qualify for the relief.

The relief reduces the standard SDLT on the first portion of the purchase price. The 2% non-resident surcharge is then applied on top of the reduced standard rate.

Net result: a non-UK resident first-time buyer pays less SDLT than a non-UK resident buying a subsequent property, but pays more than a UK-resident first-time buyer of the same property. For more on buying your first UK property as an expat, see the expat first-time buyer page.

The rebate: becoming UK resident after buying

The non-resident SDLT surcharge can be reclaimed in one specific set of circumstances: if you buy UK property as a non-UK resident for use as your main home, then become UK resident within 2 years of completion, you can claim a rebate of the 2% surcharge.

The conditions for a refund claim are:

• The property was purchased as your main residence, not as a buy-to-let or second home.
• You become UK resident (that is, you are present in the UK on at least 183 days in any continuous 365-day period) within 2 years of completion.
• The refund claim is made within 2 years of the purchase completion date.

The claim is made by amending the SDLT return with HMRC. A solicitor or tax adviser can handle this.

This rebate is most relevant to expats returning to the UK, or to people in the process of relocating who have bought before their UK presence reaches 183 days. For more on buying around a return to the UK, see the returning to the UK page.

Scotland and Wales

If you are buying property in Scotland, LBTT applies. Revenue Scotland administers LBTT and it does not include a non-resident surcharge. There is an Additional Dwelling Supplement (ADS) in Scotland for purchases of additional residential properties, but this applies regardless of residency status.

If you are buying in Wales, LTT applies. The Welsh Revenue Authority administers LTT and it does not include a non-resident surcharge. Wales has higher residential rates for additional dwellings, but again these are not residency-dependent.

Buyers looking at property across England, Scotland, or Wales should confirm which regime applies to the property they are buying before calculating the full tax cost. The stamp duty calculator covers England and Northern Ireland (SDLT).

Budget this before you make an offer

The non-resident SDLT cost is substantial and should be calculated before making an offer, not after. An offer accepted at a price that does not account for the full SDLT bill can lead to a funding shortfall at completion.

The full cost of purchasing UK property as a non-UK resident typically includes:

• SDLT including the 2% non-resident surcharge (and HRAD surcharge if a BTL or second home).
• Solicitor fees for conveyancing.
• Survey and lender valuation fees.
• Mortgage arrangement and broker fees.
• Foreign exchange costs if your funds are in a non-sterling currency.

Use the stamp duty calculator for the SDLT element. For the mortgage side of a purchase, speak with a specialist expat mortgage broker who works regularly with non-resident purchases.

Common questions