Stamp Duty Surcharge for Non-UK Residents

Since you are writing an article for a UK accounting practice website knowledge base, if you're a non-UK resident purchasing residential property in England or Northern Ireland, you'll pay an additional 2% Stamp Duty Land Tax (SDLT) surcharge on top of the standard rates. This surcharge has applied to all qualifying purchases since 1 April 2021. The good news is that you may be able to claim a refund if you later meet UK residency requirements.

What is the non-resident surcharge?

The non-resident surcharge adds 2 percentage points to the standard SDLT rates when non-UK residents buy residential property in England or Northern Ireland. This surcharge applies whether you're buying the property as your main home, as an investment, or as an additional property.

The surcharge applies on top of any other SDLT you owe, including the 3% higher rate for additional dwellings if applicable.

When the surcharge applies

You must pay the surcharge when you buy:

A freehold residential property for £40,000 or more
A leasehold residential property where the lease premium is £40,000 or more, or the rent is £1,000 or more (excluding leases with 7 years or less remaining)

The surcharge applies to the purchase of the property itself, along with its garden, grounds, and any buildings or structures such as a detached garage. However, it does not apply if you're only buying land or outbuildings without the actual residential property.

The surcharge does not apply to:

Non-residential property or mixed-use transactions (unless you claim Multiple Dwellings Relief)
Property in Scotland or Wales (different rules apply there)

Who counts as a non-UK resident?

The residence test for SDLT purposes is different from other UK tax rules. Your nationality, citizenship, visa status, or status under the Statutory Residence Test for income tax are not relevant here.

Individuals

You are non-UK resident for SDLT purposes if you have not been present in the UK for at least 183 days during the 12 months immediately before you buy the property.

A day counts if you are in the UK at the end of that day. Days spent anywhere in the UK count—England, Scotland, Wales, or Northern Ireland.

The key date is the "effective date of transaction", which is usually your completion date.

Example: Tunde lives in Canada and purchases a property in England on 1 June 2025 for £800,000. Between 2 June 2024 and 1 June 2025, he spent 200 days in the UK. Because he was present for more than 183 days, he is UK resident for SDLT purposes and does not pay the surcharge.

Buying with others

If you're buying a property with other people, each buyer is tested separately. If any buyer is non-UK resident, then all buyers are treated as non-UK resident and the surcharge applies to the entire purchase.

Partnership example: Camille and Joshua are business partners buying a property through their LLP on 1 June 2025. Camille spent 200 days in the UK in the prior 12 months, but Joshua spent only 150 days. Because Joshua is non-UK resident, the entire purchase is treated as a non-resident transaction and the surcharge applies.

Married couples and civil partners

If you're buying together with your spouse or civil partner (and you're not separated and neither of you is acting as a trustee), you're both treated as UK resident if either of you meets the 183-day test.

Example: Elijah and Hayley are married and jointly purchase a property in Northern Ireland on 1 June 2025 for £950,000. Elijah spent 183 days in the UK in the prior year, but Hayley only spent 100 days. Because Elijah is UK resident, Hayley is also treated as UK resident for this transaction, and the surcharge does not apply.

Companies

Companies are non-UK resident if they are not UK resident for Corporation Tax purposes on the effective date of the transaction.

Special rules apply to UK resident companies that are "close companies" controlled by non-UK residents. These companies may be treated as non-UK resident for SDLT purposes even though they are UK resident for Corporation Tax.

Trusts

A trust is treated as non-UK resident if any trustee fails the residence test. Exceptions apply for bare trusts and certain other trust types.

Claiming a refund if you become UK resident

If you paid the non-resident surcharge but later meet the UK residency test, you can apply for a refund of the 2% surcharge.

To qualify for a refund, all purchasers must be individuals who have spent 183 days in the UK in any continuous 365-day period that:

Starts no more than 364 days before your completion date
Ends no more than 365 days after your completion date

You must claim the refund within 2 years of your completion date.

How to apply for a refund

You apply online through HMRC. Your application is a request to amend your original SDLT return.

You'll need:

Your Unique Transaction Reference Number (UTRN) from your original SDLT return
The effective date of your purchase (usually completion date)
The amount of SDLT you paid, including the surcharge
The purchase price (for freehold) or lease premium details (for leasehold)
UK bank account details for the refund

If you've already claimed a refund of the 3% higher rate for additional dwellings, you'll need the revised SDLT amount after that refund.

You may need to ask your solicitor or conveyancer for these details if you don't have them to hand.

You can apply using your Self Assessment login details, or simply with your email address if you don't have a Self Assessment account. You can save your application and return to it later.

If an agent is applying on your behalf, they'll need a signed letter of authority from you and will need to upload this with the application.

Sources

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.