Non-resident stamp duty surcharge
Non-UK-resident buyers pay an extra 2% stamp duty in England and Northern Ireland, on top of the standard rates and the additional-property surcharge. This shows the full bill.
How the surcharge is added
The non-resident surcharge sits on top of the normal stamp duty system in England and Northern Ireland. First the standard SDLT is worked out from the price bands, including first-time-buyer relief or the additional-property surcharge if either applies. Then a flat 2% of the whole purchase price is added for a buyer who fails the UK residence test. The surcharge is not banded, it is 2% of the full consideration once the price is at least £40,000.
Because the 2% applies to the entire price, it grows in cash terms with the property value. It also stacks with the additional-property surcharge, so a non-resident buying a second home faces the largest bill of all. The residence test for this charge is its own rule, based on days spent in the UK, not the general tax residence test.
Worked example
A non-resident buying a £450,000 home as their only property pays £12,500 in standard stamp duty. The 2% surcharge adds £9,000, taking the total to £21,500, an effective rate of 4.8%. If the same buyer were purchasing an additional property, the additional-property surcharge would be added to the base first, and the 2% would sit on top of that larger figure.
Common questions
Who pays the non-resident surcharge?
Buyers of residential property in England or Northern Ireland who are not UK resident for the purpose of the test pay an extra 2% on top of the normal stamp duty. On the £450,000 example that adds £9,000 to the bill.
How is UK residence decided for this?
It has its own test, not the same as the general tax residence rules. In broad terms you count as non-resident for the surcharge if you were present in the UK for fewer than 183 days in the year before the purchase. If you later spend enough days in the UK, you may be able to reclaim the 2%.
Does it stack with the second-home surcharge?
Yes. The 2% non-resident surcharge is separate from the additional-property surcharge. A non-resident buying a second home or buy-to-let can pay standard stamp duty, plus the additional-property rate, plus the 2%, all on the same purchase. Tick the additional-property box to see that combined figure.
Can first-time buyers still get relief?
A non-resident first-time buyer can still qualify for first-time-buyer relief on the base stamp duty, but the 2% surcharge is added on top of the relieved amount. The relief lowers the base, it does not remove the non-resident charge.
Can the surcharge be refunded?
Sometimes. If you become UK resident by spending enough days here in a continuous 365-day window that includes the year around the purchase, you can apply to HMRC to reclaim the 2%. There are time limits, so check the current gov.uk guidance before relying on a refund.