Non-Resident Stamp Duty
The 2% surcharge for overseas buyers explained.
Key Takeaways
- Non-UK residents pay an additional 2% SDLT surcharge on residential property purchases in England and Northern Ireland, introduced in April 2021 to support domestic buyers.
- The 183-day presence test determines UK residence status. You must be physically present in the UK for at least 183 days in the 12 months ending with the completion date to avoid the 2% surcharge.
- Non-resident buyers purchasing additional properties face a combined 7% surcharge, 2% non-resident surcharge plus 5% additional property surcharge, on top of standard SDLT rates.
- A £500,000 property purchase by a non-resident buying their only property costs £25,000 in SDLT compared to £15,000 for a UK resident. The 2% surcharge adds £10,000 to the bill.
- Non-resident refunds are possible if you spend 183 days in the UK in a continuous 365-day period that ends no later than 365 days after completion. There is no requirement to live in the property. You must claim within 2 years of the effective date of the transaction.
- A company pays the 2% surcharge if it is not UK resident for Corporation Tax purposes, or if it is a UK-resident close company controlled by non-UK residents. Where the company is resident depends on Corporation Tax rules (UK incorporation or central management and control in the UK), not on where its shareholders live.
- Joint purchases where any buyer is non-resident trigger the 2% surcharge on the entire property. The exception is a married couple or civil partners living together: if one of them is UK resident, both are treated as UK resident.
- Scotland and Wales have no non-resident surcharge. The 2% non-resident surcharge is an England and Northern Ireland SDLT rule only. Scotland charges an 8% Additional Dwelling Supplement on additional residential properties (increased from 6% in December 2024), regardless of buyer residence status. Wales applies higher LTT rates for additional residential properties, also with no non-resident component.
+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 rateswhen purchasing residential property in England and Northern Ireland. Use our non-resident calculator to find your exact cost. This is designed to help level the playing field for UK residents.
2% Non-Resident Surcharge
The 2% non-resident surcharge applies on top of ALL other rates, including the standard SDLT bands and the 5% additional property surcharge (if applicable). This means non-residents can face multiple layers of charges:
- Non-resident buying main residence: Standard rate + 2% NR surcharge
- Non-resident buying second home/BTL: Standard rate + 5% additional dwelling surcharge + 2% NR surcharge = 7% total surcharge
Introduced April 2021
The non-resident surcharge was introduced on 1 April 2021 as part of measures to support UK residents in the property market. Properties purchased before this date were not subject to the 2% surcharge, even if the buyer was non-UK resident.
How UK Residence Is Determined
UK residence for stamp duty purposes is determined by the 183-day test. You're considered UK resident if you have been present in the UK for at least 183 days in the 12 months up to and including your completion date.
The 183-Day Test Explained
Look at the 12 months up to and including your completion date (for a 1 June 2026 completion, 2 June 2025 to 1 June 2026) and count the days you were in the UK at midnight:
- UK Resident: 183 days or more
- Non-Resident: fewer than 183 days. You pay the 2%, but can reclaim it if you reach 183 days in a 365-day period ending within a year after completion
What Counts as "Present in the UK"?
You're counted as present on any day when you are in the UK at the end of the day (midnight). The rules are:
- Days of arrival: Count if you arrive before midnight and are still in the UK at midnight
- Days of departure: Do not count, because you are not in the UK at the end of the day
- Transit days: Count if you were in the UK at midnight (even if just passing through)
- Partial days: A day counts as a full day only if you are in the UK at midnight
Different from Income Tax Residence
The SDLT residence test is separate from UK income tax residence rules. You could be UK resident for income tax but non-resident for SDLT (or vice versa). HMRC only looks at physical presence in the UK for SDLT purposes - factors like home location, work ties, and family ties (used for income tax) are irrelevant.
Armed Forces and Crown Employees
If you are a member of the UK armed forces, a civil servant or a diplomat posted overseas, you are not caught by the 2% non-resident surcharge, even if you spent fewer than 183 days in the UK in the 12 months before completion. This is because of Crown employment relief.
Overseas postings still count as UK presence
The rules treat any day you spend abroad for the purposes of your Crown employment as a day present in the UK. An overseas posting therefore still counts towards the 183-day residence test, so most serving personnel pass it and pay the standard rates rather than the surcharge.
Who qualifies and how it works
- Crown employment means employment under the Crown that is of a public nature, where earnings are paid out of UK public revenue. This covers the armed forces, the civil service and the diplomatic service.
- The relief also covers your spouse or civil partner, provided you are not separated, so a joint purchase with a non-working partner is still protected.
- It is not automatic. You must claim Crown employment relief on your SDLT return, or on an amendment to that return.
What this relief does not cover
Crown employment relief only removes the 2% non-resident surcharge. It does not remove the 5% additional property surcharge if you are buying a second home or buy-to-let, and it does not change the standard rate bands. Source: GOV.UK, Rates of Stamp Duty Land Tax for non-UK residents.
Non-Resident Refund
You Can Reclaim the 2% Surcharge
If you meet the UK presence test around the time of your purchase, you can claim a full stamp duty refund of the 2% non-resident surcharge. To qualify, every buyer must be an individual who spends 183+ days in the UK during a continuous 365-day period that starts no more than 364 days before the effective date and ends no more than 365 days after it.
Claim deadline: Per GOV.UK, the claim must be made by amending the SDLT return within 2 years of the effective date of the transaction (usually the completion date). The presence test window and the 2-year refund claim window both run from the effective date, not from the date you meet the 183-day test. Claims are made by amending your original SDLT return.
Example scenario: You complete purchase on 1 March 2025 while living abroad (pay 2% surcharge). You move to the UK and must accumulate 183+ days of UK presence in a continuous 365-day period that starts no earlier than 2 March 2024 (364 days before the effective date) and ends no later than 1 March 2026 (365 days after it). Once the presence test is met, you must submit the refund claim (by amending your SDLT return) no later than 1 March 2027 (2 years from the effective date). Do not wait until the residence test is met to start paying attention to the deadline: the deadline is tied to the purchase date, not to the date you become resident.
Worked Example: Non-Resident Buying £400,000 Property
Let's compare the stamp duty for a £400,000 property across three buyer scenarios: UK resident buying first home, UK resident buying additional property, and non-resident buying additional property.
UK Resident
First Home
UK Resident
Additional Property
Non-Resident
Additional Property
Breakdown of Non-Resident Additional Property SDLT
- Standard SDLT: £10,000
- + 5% additional property surcharge: £20,000
- + 2% non-resident surcharge: £8,000
- = Total SDLT: £38,000 (9.5% of purchase price)
British Expats Returning to the UK
A common scenario involves British expats who buy a UK property while still living and working abroad, intending to return in the future. This creates a challenging situation:
Typical Expat Scenario
You're a British citizen working in Dubai, Singapore, or the USA. You want to buy a UK property to live in when you return, but you're still living abroad at the time of purchase. You also keep your overseas property. This means:
- 5% additional property surcharge applies: Because you own the overseas property
- 2% non-resident surcharge applies: Because you haven't spent 183 days in the UK
- Total surcharge: 7% on top of standard rates
Good News: You Can Reclaim Both Surcharges
When you move back to the UK:
- Once you spend 183 days in the UK in a 365-day period ending no more than 365 days after purchase: Claim back the 2% non-resident surcharge
- If you sell your overseas property within 36 months of UK purchase: Claim back the 5% additional property surcharge
This means an expat who pays £38,000 SDLT on a £400,000 property (with both surcharges) can potentially reduce it to £10,000 by becoming UK resident and selling the overseas property within the allowed timeframes.
Paid the 2% non-resident surcharge?
If you spend 183 days in the UK around the time of your purchase, you may be able to claim it back.
Companies and Non-Residence
Corporate Buyers: Different Rules
When a company (UK or foreign) buys residential property over £500,000, the rules change entirely:
- Companies buying a dwelling over £500,000 pay the flat 17% corporate rate on the entire purchase price unless a relief applies. The main relief is for property rental businesses: a company buying to let pays the standard bands plus the 5% higher rates instead
- The 2% non-resident surcharge DOES stack on top of the 17% flat rate when the buyer is a non-UK-resident company, taking the maximum to 19%. GOV.UK confirms the 2% applies on top of all other residential rates, including the higher rates for additional dwellings and the rates for purchases made by companies.
- For company purchases at or below £500,000, standard band rates apply plus the 5% additional dwelling surcharge; if the company is also non-UK-resident, the 2% surcharge stacks on top as well
- A company is non-resident if it is not UK resident for Corporation Tax purposes, or if it is a UK-resident close company controlled by non-UK residents
Example: A non-UK-resident company buying a £750,000 UK residential property with no relief pays 17% (corporate flat rate) + 2% (non-resident surcharge) = 19% total = £142,500. A UK-resident company buying the same property with no relief pays 17% = £127,500. If the property is bought to let and property rental business relief applies, a UK company pays £65,000 (standard bands plus 5%) and a non-UK-resident company pays £80,000 (plus a further 2%). A non-UK-resident individual buying the same property as an additional property also pays standard rates + 5% + 2%, which is £80,000.
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 | £93,750 | £113,750 | +£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 a continuous 365-day period that starts no more than 364 days before the effective date and ends no more than 365 days after it.
Claim deadline: Within 2 years of the effective date of the transaction, normally your completion date.
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, even if another buyer is UK resident. The exception is spouses or civil partners who are living together and not acting as trustees: if one of you is UK resident, you are both treated as UK resident and the surcharge does not apply.
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. See our Scotland guide and check current rates.
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.
Frequently Asked Questions About Non-Resident Buyers
Do expats pay extra stamp duty when buying UK property?
Yes. British expats living abroad are treated as non-UK residents for stamp duty purposes and must pay an additional 2% surcharge on top of all other rates. If the expat also owns property abroad (or in the UK), they face the 5% additional property surcharge too, meaning a total 7% in surcharges. For example, an expat buying a £400,000 UK property as a second home pays £38,000 stamp duty (vs £10,000 for a UK resident buying their first home). However, expats can reclaim the 2% if they move back to the UK and spend 183 days in the UK in a 365-day period ending no more than 365 days after purchase.
How do I prove UK residence for stamp duty purposes?
You must demonstrate you spent 183 days or more in the UK in the 12 months up to and including completion. Evidence includes: passport stamps, flight tickets, hotel/accommodation records, work attendance records, bank statements showing UK transactions, utility bills, or GP/NHS records. The test is based purely on physical presence in the UK - where you work, pay tax, or have family is irrelevant. You're counted as "present" on any day where you were in the UK at midnight. Your arrival day counts if you are still here at midnight; your departure day does not.
Do armed forces pay the non-resident stamp duty surcharge?
No, in most cases. UK armed forces personnel, civil servants and diplomats posted overseas qualify for Crown employment relief. Every day spent abroad for that employment is treated as a day present in the UK, so an overseas posting still counts towards the 183-day residence test and the buyer pays the standard rates rather than the 2% surcharge. The relief also covers a spouse or civil partner who is not separated, but it must be claimed on the SDLT return. It only removes the 2% non-resident surcharge, not the 5% additional property surcharge on a second home.
Can I get a refund if I move to the UK after buying?
Yes, if every buyer is an individual who spends at least 183 days in the UK in a continuous 365-day period that starts no more than 364 days before the effective date (normally your completion date) and ends no more than 365 days after it. You can then claim a full refund of the 2% non-resident surcharge. The claim deadline is 2 years from the effective date. The refund is claimed by amending your original SDLT return. For a £500,000 property, this means reclaiming £10,000. HMRC says it usually pays within 15 working days of receiving the claim.
How much extra stamp duty do non-residents pay?
Non-residents pay an extra 2% on the entire purchase price for any residential property in England or Northern Ireland. This stacks with other charges: if buying a main residence, you pay standard rate + 2%. If buying a second home or buy-to-let, you pay standard rate + 5% additional property surcharge + 2% non-resident surcharge = 7% total surcharge. For example, on a £300,000 second home, the non-resident surcharge alone adds £6,000 (from £20,000 to £26,000 total SDLT). Scotland and Wales have no non-resident surcharge.
Does the 2% surcharge apply in Scotland and Wales?
No. The 2% non-resident surcharge only applies in England and Northern Ireland. Scotland and Wales operate their own land transaction tax systems (LBTT and LTT respectively) and have chosen not to implement a non-resident surcharge. Non-UK residents buying in Scotland or Wales pay exactly the same rates as UK residents. However, if buying an additional property in Scotland, you'll still pay the 8% Additional Dwelling Supplement. In Wales, you'll pay the higher residential rates (starting at 5% surcharge) if it's an additional property.
Reviewed by
Julie White
ACAStamp duty specialist since 1999Stamp Duty Land Tax Specialist
ACA and Tax Adviser with a career spanning nearly four decades, specialising in stamp duty planning and advisory work since 1999.