Stamp Duty for Non-UK Residents: The 2% Surcharge Explained
If you are not a UK resident for tax purposes and you buy a home in England or Northern Ireland, you usually pay a 2% surcharge on top of the normal Stamp Duty Land Tax (SDLT). If the property is an additional home, such as a buy-to-let, a further 5% usually applies. This guide explains who counts as a non-resident, how the rates stack and what a typical purchase costs. It sits alongside our page on expat mortgages.
This guide is general information, not tax advice. It covers England and Northern Ireland. Rates and reliefs change, and your circumstances may differ, so check GOV.UK or take advice before you buy.
The short answer
- The surcharge is 2% on top of all other residential SDLT rates, for purchases in England and Northern Ireland.
- It has applied to purchases on or after 1 April 2021.
- If you also own another residential property, GOV.UK says you usually pay a further 5% on top.
- For SDLT, you are non-resident if you were not in the UK for at least 183 days in the 12 months before the purchase.
- Scotland and Wales have their own property taxes with different rules.
Who counts as a non-UK resident for SDLT
The SDLT test is based on days in the UK, not on your passport or where you pay income tax. According to GOV.UK, you are not a UK resident for SDLT if you are not present in the UK for at least 183 days, or six months, during the 12 months before your purchase. That differs from the tests used for income tax, so you can be a UK taxpayer in one sense and non-resident for stamp duty in another. Some buyers, such as certain companies and trusts, are treated differently, so check which rules apply to you.
The standard rates
GOV.UK gives these rates for a single residential property, paid on each portion of the price.
| Portion of the price | Standard SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
How the surcharges stack
HMRC’s guidance says the non-resident surcharge applies on top of all other residential rates, including the rates for first-time buyers and for additional dwellings. So a non-resident pays:
- the standard rates, plus 2%, if the property is the only home they will own, or
- the standard rates, plus 5% for an additional property, plus 2% for being non-resident, which is 7% above the standard rates in total.
Properties you own anywhere in the world can count when deciding whether the additional-property rate applies, so check your position carefully.
Worked examples
These examples use a £400,000 purchase in England and the rates above. They are illustrations, not tax advice.
| Non-resident, only property | Non-resident, additional property | |
|---|---|---|
| Standard SDLT (£0 + £2,500 + £7,500) | £10,000 | £10,000 |
| Additional property, 5% of £400,000 | None | £20,000 |
| Non-resident surcharge, 2% of £400,000 | £8,000 | £8,000 |
| Total | £18,000 | £38,000 |
The standard rates apply band by band, but the 5% and 2% extras are flat percentages of the whole price, which is why a buy-to-let purchase can cost much more than the headline rates suggest. Use HMRC’s online SDLT calculator to check your own figure.
What the surcharge does not apply to
- Non-residential property and mixed-use purchases, which have their own rates.
- Purchases in Scotland and Wales, which use different taxes.
- Certain reliefs and exemptions, and certain types of buyer. HMRC lists them, so check before you assume you pay in full.
Refunds if you become UK resident
Subject to conditions, HMRC allows the surcharge to be refunded in some cases, for example where a buyer who was non-resident at purchase later spends enough time in the UK. GOV.UK sets out the conditions and time limits, and they are strict, so read the refund rules before you rely on one.
Planning your purchase
- Count your days in the UK for the 12 months before your purchase date and keep the records.
- Add the surcharges to your budget from the start, because they come on top of the deposit and lender fees.
- If you need to bridge the timing, look at bridging loan costs carefully, because they add to the total.
- Take tax advice if you are buying through a company or trust, because special rules apply.
Common mistakes
- Forgetting the 2% surcharge when budgeting.
- Assuming the 183-day test matches the income tax residence test.
- Missing that a property you own overseas can trigger the additional-property rate.
- Using Scottish or Welsh rates for an English purchase, or the reverse.
- Leaving the SDLT calculation until just before completion.
Related reading
If you are buying to let, see our guide to getting an expat buy-to-let mortgage, and for lender criteria see expat mortgage deposit and income rules and the guide to a mortgage on foreign-currency income. For the wider picture, see our expat financing hub, our overview of UK expat mortgage options and our guide to property finance for expats.
Frequently asked questions
How much extra stamp duty do non-residents pay?
A 2% surcharge on top of all other residential rates when buying in England or Northern Ireland. An additional property also usually pays a further 5%.
Who counts as a non-UK resident for stamp duty?
Someone who was not present in the UK for at least 183 days in the 12 months before the purchase, according to GOV.UK.
Does the surcharge apply in Scotland or Wales?
No. The 2% non-resident surcharge applies in England and Northern Ireland. Scotland and Wales have their own taxes and rules.
Does the surcharge apply to a buy-to-let?
Yes. A buy-to-let purchase by a non-resident usually pays the standard rates plus 5% for an additional property plus 2% for non-residence.
Can I get the surcharge refunded?
In some cases, subject to conditions and time limits set by HMRC. Check the GOV.UK refund rules before you rely on one.
Sources and further reading
- GOV.UK: Stamp Duty Land Tax, residential property rates
- HMRC Stamp Duty Land Tax Manual: increased rates for non-resident transactions
This article is for information only and is not tax or financial advice. Rates, reliefs and residence tests change. Check GOV.UK or take regulated advice before you buy.
