Key facts
- The surcharge is 2% on top of all standard and higher-rate SDLT.
- It applies to purchases by individuals who were not UK resident for at least 183 days in the 12 months before the purchase.
- For joint purchases, if any buyer is non-UK resident, the surcharge applies to the entire transaction.
- Companies controlled by non-UK residents are also caught.
- A refund is available if you become UK resident within 12 months of the purchase.
Overview
The non-resident surcharge was introduced on 1 April 2021 to increase the SDLT payable by overseas buyers of residential property in England and Northern Ireland. The surcharge is 2%, added on top of all other SDLT rates (including the higher rates for additional dwellings if applicable).[1]
The Residence Test
For SDLT purposes, you are UK resident if you were present in the UK for at least 183 days in the 12-month period ending on the effective date of the transaction (usually completion day).[1]
Key points about the test:
- A “day” means a day on which you were present in the UK at the end of the day (midnight)
- This is a simpler test than the Statutory Residence Test (SRT) used for Income Tax purposes
- The 12-month period runs backwards from the effective date — it does not follow the tax year
- You can be UK resident for Income Tax purposes but non-resident for SDLT purposes, or vice versa
Different from Income Tax: The SDLT residence test is purely based on physical presence (183 days). It does not consider the “ties” or “split year” treatment used for Income Tax. Someone living mainly abroad but with UK ties may still be non-resident for SDLT.
Who Is Caught?
The surcharge applies to:[2]
- Non-UK resident individuals (based on the 183-day test)
- Companies that are not UK resident (broadly, those not incorporated or managed and controlled in the UK)
- Joint purchases where any one of the purchasers is non-UK resident
- Trusts where the trustees include a non-UK resident trustee and the trust is buying residential property
Combined Rate Tables
The surcharge stacks with both the standard rates and the additional dwellings surcharge:[3]
| Band | Standard | Non-Resident Only (+2%) | Additional Dwelling (+5%) | Non-Resident + Additional (+7%) |
|---|---|---|---|---|
| Up to £125,000 | 0% | 2% | 5% | 7% |
| £125,001–£250,000 | 2% | 4% | 7% | 9% |
| £250,001–£925,000 | 5% | 7% | 10% | 12% |
| £925,001–£1.5m | 10% | 12% | 15% | 17% |
| Over £1.5m | 12% | 14% | 17% | 19% |
Worked Example
A non-UK resident buys a £400,000 property as a second home:
| Slice | Amount | Rate (standard + 5% + 2%) | SDLT |
|---|---|---|---|
| £0 – £125,000 | £125,000 | 7% | £8,750 |
| £125,001 – £250,000 | £125,000 | 9% | £11,250 |
| £250,001 – £400,000 | £150,000 | 12% | £18,000 |
| Total SDLT | £38,000 | ||
| Standard rate comparison (UK resident, only home) | £10,000 | ||
Refund for Becoming UK Resident
If you paid the 2% surcharge but subsequently become UK resident (spending at least 183 days in the UK) within the 12 months following the effective date, you can claim a refund:[1]
- The claim must be made within two years of the effective date
- You must provide evidence that you met the 183-day test in the 12 months following the purchase
- The refund applies only to the 2% non-resident element — any additional dwellings surcharge is not refunded by this route
Tip: If you are relocating to the UK permanently, consider whether you can delay completion until you have spent 183 days in the UK. This could save the 2% surcharge entirely. However, weigh this against the risk of property prices changing in the meantime.
Frequently Asked Questions
How is UK residence determined for SDLT?
For SDLT purposes, you are UK resident if you were present in the UK for at least 183 days in the 12 months ending on the effective date of the transaction. This is a simpler test than the Statutory Residence Test used for Income Tax.
Can I get a refund of the 2% surcharge?
Yes. If you become UK resident (spending 183 days or more in the UK) in the 12 months after the effective date, you can apply for a refund. The claim must be made within two years of the effective date.
Does the surcharge apply to commercial property?
No. The non-resident surcharge only applies to residential property purchases. Commercial and mixed-use property purchases are not affected.
What if I am buying with a UK resident partner?
If any one purchaser is non-UK resident, the surcharge applies to the whole transaction. A UK-resident buyer purchasing jointly with a non-UK-resident buyer will pay the surcharge on the entire purchase price.
Further Reading
- Higher Rates for Additional Dwellings — the 5% surcharge for second properties
- Residential SDLT Rates (2025/26) — full rate tables
- Who Pays SDLT? — buyers, companies, trusts, and non-residents
- Replacing Your Main Residence — reclaiming the additional dwellings surcharge
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