SDLT Surcharge for Foreign Buyers UK 2025

Quick answer

Since 1 April 2021, non-UK-resident buyers of residential property in England or Northern Ireland pay a 2% surcharge on top of all standard SDLT rates. The surcharge applies in addition to any other surcharges — including the 5% additional-dwelling surcharge for second homes and buy-to-let, which itself increased from 3% to 5% on 31 October 2024 (Autumn Budget).

The 2% surcharge is refundable if the buyer becomes UK-resident within two years of the transaction.

The full SDLT rate ladder for 2025/26 (England & NI)

Standard rates on a sole residential purchase (single dwelling, UK-resident, not a first-time buyer):

For first-time buyers, the nil-rate band rises to £300,000 (and 5% applies between £300,001 and £500,000); no FTB relief above £500,000.

Surcharges:

• +5% for additional dwellings (second homes, BTL).
• +2% for non-UK residents.
• +15% flat rate for corporate buyers above £500,000 (separate ATED regime).

Worked example 1 — non-resident buying a £500,000 BTL

Anand lives in Dubai and buys a £500,000 flat in Manchester for letting.

Standard SDLT on £500,000:

• £0–£125,000 at 0% = £0
• £125,001–£250,000 at 2% = £2,500
• £250,001–£500,000 at 5% = £12,500
• Standard SDLT: £15,000

Additional dwelling surcharge: 5% × £500,000 = £25,000

Non-resident surcharge: 2% × £500,000 = £10,000

Total SDLT: £50,000 — 10% of the price.

A UK-resident first-time buyer of the same property would pay only £10,000 (5% on £200,000 above £300k). The non-resident BTL buyer pays five times more.

Worked example 2 — non-resident buying a £800,000 main home

Maria works in Singapore but is buying a £800,000 London flat to use as her future home when she returns to the UK in 18 months.

Standard SDLT:

• £125k × 0% = £0
• £125k × 2% = £2,500
• £550k × 5% = £27,500
• Standard SDLT: £30,000

No additional-dwelling surcharge (she will sell her current home / has none).

Non-resident surcharge: 2% × £800,000 = £16,000.

Total SDLT at completion: £46,000.

Because Maria intends to spend 183+ days in the UK within the next two years, she can apply for a £16,000 refund of the 2% surcharge once she meets the residence test.

The 183-day residence test for SDLT

For SDLT-residence purposes only:

• The buyer must be present in the UK for at least 183 days during the 12 months ending on the day of completion.
• "Present" means in the UK at midnight at the end of the day.
• This is a simpler — and far narrower — test than the Statutory Residence Test used for income tax.

Crucially, it is possible to be:

• UK-resident for income tax under the SRT but non-resident for SDLT because of recent travel patterns.
• And vice versa.

The two tests are completely separate.

Joint purchases and spouses

If two or more people buy jointly, the surcharge applies if any of them is non-UK resident under the 183-day test — except in one case:

• Married couples or civil partners not separated: if one spouse is UK-resident and the other is not, the couple is treated as all UK-resident provided they buy in joint names. This protects e.g. a UK-resident worker whose spouse is on a temporary overseas posting.

For unmarried co-buyers there is no such relief — even one non-resident co-buyer triggers the surcharge on the whole transaction.

Refund mechanics

A non-resident buyer who later becomes resident can claim a refund:

1. Spend 183+ days in the UK in any continuous 365-day period.
2. The 365-day window must start no more than 364 days before completion and end no more than 730 days (2 years) after completion.
3. Apply within 2 years of completion via an amended SDLT return (form SDLT5).
4. HMRC repays the 2% surcharge directly.

The refund is only of the 2% non-resident element — not the 5% additional-dwelling surcharge, which is governed by different rules (you'd need to sell your previous main home within 3 years).

Companies and trusts

The 2% surcharge applies to most corporate purchasers, including overseas SPVs, with limited exceptions for collective-investment schemes and authorised pension funds.

Note that purchases by non-natural persons (typically companies) above £500,000 of single dwellings face the 15% flat rate under the original 2012 anti-avoidance regime, replaced/modified by the Annual Tax on Enveloped Dwellings (ATED). The 2% non-resident surcharge stacks on top of the 15% rate where applicable.

For incorporated BTL buyers planning multi-property purchases, see our buy-to-let viability post.

Scotland and Wales — different regimes

The 2% non-resident surcharge applies ONLY in England and Northern Ireland under SDLT. Scotland and Wales have separate property tax regimes:

• Scotland (LBTT) has an Additional Dwelling Supplement of 8% (up from 6% on 5 December 2024) for second homes but no explicit non-resident surcharge.
• Wales (LTT) has a 4% higher-rate charge for additional dwellings but no non-resident surcharge.

A non-resident buyer of a £500,000 BTL in Edinburgh would pay LBTT of (broadly) £63,350 — higher than the equivalent English non-resident, because Scottish LBTT bands are steeper at higher prices. See our stamp duty comparison post.

Practical tips for non-resident buyers

1. Plan the 183-day test in writing before completion — keep travel logs and immigration records.
2. Budget the surcharge as a temporary liquidity cost, not a permanent expense, if you intend to relocate.
3. For BTL specifically, model the post-surcharge yield carefully — 10% of purchase price in SDLT typically wipes out 1.5 years of net rent.
4. Consider the spouse exemption if buying with a UK-resident partner — joint purchase as married couple may avoid the 2%.
5. Check Wales / Scotland alternatives if the property choice is flexible — different bands, sometimes lower bills at sub-£325k prices.

Try the numbers

Sources

• HMRC: SDLT — non-resident surcharge
• HMRC: SDLT — higher rates on additional dwellings
• HM Treasury: Autumn Budget 2024 — SDLT changes
• Revenue Scotland: LBTT — Additional Dwelling Supplement