HomeBuyingCosts Guide
Non-UK Resident SDLT Surcharge 2026/27 | 2% Rate
Written and reviewed by James Whitfield · Updated 2026-04-19 · 6 min read
Checked against 2026/27 HMRC, Revenue Scotland & HM Land Registry rates · Editorial standards · Methodology
The 2% non-UK resident SDLT surcharge applies in addition to standard or first-time buyer rates. On a £400,000 purchase it adds £8,000 to the tax bill.
Key takeaways
- Non-UK residents pay a 2% SDLT surcharge on top of standard (and any additional-property) rates.1
- The test is fewer than 183 days in the UK in the 12 months before completion.1
- On a £400,000 purchase the surcharge adds £8,000.1
- Become UK-resident within 12 months of completion and you can reclaim the 2%.1
Non-UK resident buyers purchasing residential property in England or Northern Ireland pay a 2% SDLT surcharge on top of the standard rates1 (or the additional property rates if also applicable). The surcharge was introduced in April 2021 and applies to individuals who are not present in the UK for at least 183 days in the 12 months before completion.1 On a £400,000 purchase, the surcharge adds £8,000 to the SDLT bill.1
The residency test for the non-UK resident surcharge uses a specific HMRC definition that is different from other UK residency tests (such as the Statutory Residence Test for income tax). Buyers living and working abroad who are purchasing UK property should confirm their residency status with their solicitor before assuming which SDLT rates apply.
Worked examples — home mover typical fees
| Price | England/NI tax | Scotland tax | Wales tax |
|---|---|---|---|
| £300,000 | £5,000 | £4,600 | £4,500 |
| £500,000 | £15,000 | £23,350 | £18,000 |
| £750,000 | £27,500 | £48,350 | £36,750 |
How the 2% non-resident surcharge works
The non-UK resident SDLT surcharge is a flat 2% added to every SDLT band for buyers who do not meet the UK residency condition. The standard bands become: 2% on £0–£125,000; 4% on £125,001–£250,000; 7% on £250,001–£925,000; 12% on £925,001–£1,500,000; 14% above £1,500,000. If the additional dwelling surcharge also applies (i.e. the buyer already owns another property), the rates increase by a further 5% — creating effective rates of 7%, 9%, 12%, 17% and 19% respectively.
On a £300,000 purchase by a non-UK resident standard buyer (not first-time, not additional property): standard SDLT would be £5,000; with the 2% surcharge, total SDLT is £11,000. The surcharge adds 2% × £300,000 = £6,000. For a non-UK resident purchasing a second home at £300,000, the standard + additional (5%) + non-resident (2%) rates produce a total of approximately £26,000.
The surcharge applies to the whole purchase price from £0, not just above a threshold. It therefore increases proportionally with purchase price in a straightforward way — each £100,000 of purchase price adds £2,000 to the surcharge.
Who counts as non-UK resident for SDLT purposes
For SDLT purposes, an individual is UK resident if they are present in the UK for 183 or more days in the 12-month period ending on the day of completion of the property transaction. Days of presence in the UK are counted using HMRC's standard day-counting rules. This is not the same as the Statutory Residence Test (SRT) used for income tax purposes — it is a simpler, single-test approach focused on the 12 months before the specific transaction.
For joint purchases, the surcharge applies if any buyer in the transaction is non-UK resident. This means a couple where one partner is UK resident and one is not would both be treated as non-UK resident for SDLT purposes, and the surcharge applies to the whole transaction. Both buyers must be UK resident to avoid the surcharge.
Non-UK resident companies purchasing residential property also attract the surcharge. Corporate purchases are additionally subject to the Annual Tax on Enveloped Dwellings (ATED) regime in certain circumstances. Corporate ownership of UK residential property is a specialist area requiring dedicated tax advice.
Refunds for buyers who become UK resident after purchase
There is a refund mechanism for buyers who were non-UK resident at the time of purchase but subsequently become UK resident. If the buyer spends at least 183 days in the UK in the 12-month period starting on the day of completion, they can claim a refund of the 2% surcharge from HMRC.1 The refund claim must be made within 2 years of completion.
This provision is designed to protect buyers who are in transition — for example, someone who has accepted a UK job offer and is purchasing ahead of relocating, but has not yet clocked up 183 days in the UK by the completion date. They pay the surcharge at completion and reclaim it once they have established UK residency in the relevant period.
To claim the refund, the buyer submits an amendment to the original SDLT1 return within 2 years of completion, providing evidence of their UK day-count for the relevant 12-month period. Your solicitor or a tax adviser can assist with this.
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Frequently asked questions
What is the non-UK resident SDLT surcharge?+
A 2% additional SDLT charge applied to residential property purchases in England and Northern Ireland by buyers who are not UK resident. It was introduced in April 2021. The surcharge applies in addition to standard SDLT rates (and the additional dwelling surcharge if applicable). On a £400,000 purchase, the surcharge adds £8,000.
How do I know if I count as non-UK resident for stamp duty?+
For SDLT, you are UK resident if you were physically present in the UK for at least 183 days in the 12 months ending on the completion date of your purchase. This is a specific SDLT test — it is simpler than the income tax Statutory Residence Test and focuses only on a day-count in a 12-month window. Your solicitor will confirm your status based on your travel history.
Does the surcharge apply if only one buyer in a joint purchase is non-resident?+
Yes. If any buyer in a joint purchase is non-UK resident for SDLT purposes, the surcharge applies to the whole transaction. Both buyers must meet the 183-day UK presence test in the relevant 12-month period to avoid the surcharge.
Can I reclaim the surcharge if I move to the UK after buying?+
Yes, if you spend at least 183 days in the UK in the 12 months starting on the day of completion. You can then claim a full refund of the 2% surcharge by amending the SDLT return within 2 years of completion. This is designed for buyers who are relocating to the UK and purchase just before establishing residency.
Does the non-resident surcharge apply in Scotland and Wales?+
No. The non-UK resident SDLT surcharge applies only to England and Northern Ireland. Scotland and Wales do not currently have an equivalent non-resident surcharge under LBTT or LTT. LBTT and LTT are charged at standard rates regardless of the buyer's residency status.
What is the combined SDLT rate for a non-UK resident buying a second home?+
Standard SDLT + 5% additional dwelling surcharge + 2% non-resident surcharge. Effective bands: 7% on £0–£125,000; 9% on £125,001–£250,000; 12% on £250,001–£925,000; 17% on £925,001–£1,500,000; 19% above £1,500,000. On a £500,000 second home by a non-UK resident: £50,000 total SDLT.1
Do overseas buyers pay more stamp duty than UK buyers?+
Yes. Non-UK resident buyers in England pay an additional 2% surcharge on all purchases, giving a higher effective rate across all bands. This surcharge was introduced in April 2021 specifically to reduce overseas investment demand in UK residential property. There is a refund mechanism if the buyer subsequently becomes UK resident within the relevant 12-month window.
Sources & references
OfficialThe figures and rules on this page are drawn from the official UK government sources below. Rates are the confirmed 2026/27 amounts. Each link opens the relevant official page in a new tab.
- GOV.UK — SDLT rates for non-UK residents www.gov.uk/guidance/rates-of-stamp-duty-land-tax-for-non-uk-residents The 2% non-resident surcharge and the 183-day residence test.
- GOV.UK — Stamp Duty Land Tax: residential property rates www.gov.uk/stamp-duty-land-tax/residential-property-rates Current band-by-band residential SDLT rates.
- GOV.UK — Higher rates for additional properties www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property The 5% additional-property surcharge and 36-month refund rules.
- GOV.UK — SDLT: first-time buyers' relief www.gov.uk/stamp-duty-land-tax/residential-property-rates#first-time-buyers Relief: nil-rate to £300,000, 5% to £500,000, none above £500,000.
- Revenue Scotland — LBTT residential property revenue.scot/taxes/land-buildings-transaction-tax/residential-property Scottish LBTT rates and first-time buyer relief.
- Welsh Revenue Authority — Land Transaction Tax rates and bands www.gov.wales/land-transaction-tax-rates-and-bands Welsh LTT main and higher residential rates.
Verified against published UK government guidance. See also Methodology and Editorial standards.
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Written and reviewed by James Whitfield and the HomeBuyingCosts editorial team.
Stamp duty, LBTT and LTT figures are checked against GOV.UK, Revenue Scotland and GOV.WALES. We explain every cost of buying a home in plain English, with worked examples. Editorial standards · About us