Do non-UK residents pay extra Stamp Duty when buying property in England?

Full answer

The non-resident SDLT surcharge is a distinct, separate charge from the additional-property (second home) surcharge, and the two can apply cumulatively to the same purchase in some cases, significantly increasing the total SDLT bill for non-resident buyers of additional properties. **The 2% surcharge itself** Since April 2021, buyers who do not meet the UK residence test are charged an extra 2% SDLT surcharge on the purchase price of residential property in England and Northern Ireland, on top of whatever other SDLT rates would otherwise apply (standard rates, first-time buyer relief where applicable, and the 5% additional-property surcharge for second homes/buy-to-let purchases where relevant). **How UK residence is tested for this purpose** The test looks at the 12 months ending on the completion date of the purchase (not the tax year, and not future intentions) -- broadly, if the buyer was present in the UK for at least 183 days during that 12-month period, they count as UK resident for this specific SDLT test and the surcharge does not apply. This is a backward-looking test based on actual days present, not a general statement of residency status for other tax purposes. **The refund route for buyers who become UK resident** If a non-resident buyer pays the 2% surcharge at completion but then goes on to spend at least 183 days in the UK during the 12 months FOLLOWING completion, they can claim a refund of the 2% surcharge paid, provided the claim is made within the specified time limit (generally within 2 years of the effective date of the transaction, or a set period after becoming UK resident if later). This accommodates situations where someone buys a property shortly before permanently relocating to the UK. **Married couples/joint buyers** If a property is bought jointly and at least one buyer does not meet the UK residence test, the 2% surcharge applies to the WHOLE purchase (not just that individual's share) -- though a specific exception exists for spouses/civil partners buying together, where if one partner is UK resident, the couple can be treated as meeting the residence test jointly in some circumstances, so it is worth checking the specific spousal rules carefully rather than assuming the surcharge automatically applies to a mixed-residence couple. **Stacking with the additional-property surcharge** A non-UK resident buying a second home (in addition to a property they already own) could face BOTH the 5% additional-property surcharge AND the 2% non-resident surcharge stacking together on top of the standard SDLT rates -- a combined extra 7% surcharge above standard rates, which can add a very substantial amount to the total SDLT bill on an expensive property. **Worked example** A non-UK resident buyer (who spent less than 183 days in the UK in the 12 months before completion) purchases a £600,000 London flat as a second/investment property. They pay standard SDLT rates on £600,000, PLUS the 5% additional-property surcharge, PLUS the 2% non-resident surcharge -- a combined extra 7 percentage points added across the relevant portions of the purchase price compared with a UK-resident buyer purchasing their only home, potentially adding tens of thousands of pounds to the total SDLT bill. If, within the following 12 months, personal circumstances change and they end up spending 183+ days in the UK, they could apply to HMRC for a refund of just the 2% non-resident element (though not the 5% additional-property element, which is unrelated to residence status). **Practical tip** Buyers who are close to the 183-day threshold, or who may relocate to the UK shortly after a purchase, should keep clear, dated evidence of days spent in the UK, since this is the specific factual test HMRC will look at for both the initial surcharge liability and any subsequent refund claim.

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