Non-Resident Stamp Duty
The 2% surcharge for overseas buyers explained.
In this article
+2%
Surcharge rate
183 days
UK presence test
+5%
If also additional
Refund
Possible in 2 years
What is the Non-Resident Surcharge?
Since April 2021, non-UK residents pay an additional 2% on top of all other SDLT rates when purchasing residential property in England and Northern Ireland. This is designed to help level the playing field for UK residents.
Who is a "Non-Resident"?
You're treated as non-UK resident if you haven't been present in the UK for at least 183 days in any continuous 365-day period during the 12 months before purchase.
The 183-Day Test
Look at the 12 months before your purchase date:
- UK Resident: Present in UK for 183+ days in any 365-day period
- Non-Resident: Not present for 183+ days in any 365-day period
"Present" means being in the UK at the end of the day (midnight). Days of arrival and departure can count depending on your other days of presence.
How the 2% Adds Up
The 2% surcharge stacks with other rates. Here are the combined rates for non-residents:
| Band | Main Home | Additional (+5%) |
|---|---|---|
| £0 - £125,000 | 2% | 7% |
| £125,001 - £250,000 | 4% | 9% |
| £250,001 - £925,000 | 7% | 12% |
| £925,001 - £1,500,000 | 12% | 17% |
| Over £1,500,000 | 14% | 19% |
Example Calculations
| Property | UK Resident | Non-Resident | Extra Cost |
|---|---|---|---|
| £300,000 main home | £5,000 | £11,000 | +£6,000 |
| £500,000 main home | £15,000 | £25,000 | +£10,000 |
| £500,000 second home | £40,000 | £50,000 | +£10,000 |
| £1,000,000 second home | £73,750 | £93,750 | +£20,000 |
Can You Get a Refund?
Yes - If You Become UK Resident
You can claim back the 2% surcharge if you spend 183 days or more in the UK during any 365-day period in the 2 years after purchase.
Claim deadline: Within 2 years of the date you meet the 183-day test, or 12 months from the SDLT filing date (whichever is later).
Joint Purchases
One Non-Resident = Surcharge Applies
If you're buying with someone else and any buyer is non-UK resident, the 2% surcharge applies to the whole purchase. It doesn't matter if one buyer is UK resident - the surcharge still applies in full.
Scotland and Wales
Scotland and Wales don't have a non-resident surcharge. If you're buying property there, you'll pay the same LBTT (Scotland) or LTT (Wales) rates as UK residents.
However, you'll still face the Additional Dwelling Supplement (Scotland: 8%) or separate higher residential rates (Wales: starting at 5%) if it's an additional property.
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.