Comparison · Stamp Duty (SDLT) · 2026/27
SDLT Non-Resident Surcharge vs Additional Property Surcharge 2026/27
Two separate SDLT surcharges can apply to the same purchase -- the 2% non-UK resident surcharge and the 5% additional property surcharge. This guide explains each one, when they stack, and works through a combined-surcharge example for 2026/27.
TL;DR -- 2026/27 SDLT Surcharge Key Figures
- • Non-UK resident surcharge: +2 percentage points
- • Additional property surcharge: +5 percentage points
- • Combined maximum surcharge: +7 percentage points if both apply
- • Standard SDLT top rate: 12% (over £1.5m), before any surcharges
Non-Resident vs Additional Property Surcharge: Head-to-Head
| Feature | Non-Resident Surcharge (+2%) | Additional Property Surcharge (+5%) |
|---|---|---|
| Trigger | Buyer fails the 183-day UK presence test | Buyer already owns another residential property |
| Applies to first-time buyers? | Yes, if non-resident | No, typically (no prior property owned) |
| Refundable later? | Yes, if 183+ days spent in UK within 12 months post-completion | Yes, if previous main residence sold within 36 months |
| Applies to companies? | Yes -- company-specific residence test | Yes -- generally on every purchase |
| Region | England & Northern Ireland (SDLT) | England & Northern Ireland (SDLT) -- Scotland/Wales have separate ADS/LTT surcharges |
Worked Example: Both Surcharges Together
A non-UK resident buyer purchases a £600,000 buy-to-let flat in England while already owning a home overseas. Both surcharges apply on top of the standard SDLT bands.
| Band | Standard Rate | With +5% and +2% Surcharges |
|---|---|---|
| £0 – £125,000 | 0% | 7% |
| £125,000 – £250,000 | 2% | 9% |
| £250,000 – £600,000 | 5% | 12% |
Approximate total SDLT: standard bands give £0 + £2,500 + £17,500 = £20,000. Adding the combined 7 percentage points across the whole £600,000 price (7% x £600,000 = £42,000) brings the total to roughly £62,000 -- more than three times the standard SDLT bill, illustrating why non-resident investors buying additional property in England face a substantially higher upfront tax cost.
Frequently Asked Questions
Frequently Asked Questions
What is the SDLT non-UK resident surcharge?
The non-UK resident surcharge adds 2 percentage points of SDLT on top of the standard (or additional property) rates when the buyer fails a day-count residence test -- broadly, being present in the UK for at least 183 days in the 12 months ending on completion.
What is the SDLT additional property surcharge?
The additional property surcharge adds 5 percentage points of SDLT when buying an additional residential property (e.g. a second home or buy-to-let) while already owning another residential property. It generally does not apply if the purchase replaces your only or main residence.
Can both surcharges apply at the same time?
Yes -- they are independent. A non-UK resident buying a second home in England could pay the standard rates plus the 5% additional property surcharge plus the 2% non-resident surcharge, a combined 7 percentage points on top of standard bands.
Show 4 more questionsShow fewer questions
Do both surcharges apply to first-time buyers?
First-time buyers should not face the 5% additional property surcharge, since they do not already own a property. The 2% non-resident surcharge can still apply to a first-time buyer who fails the UK residence test -- the two rules are assessed separately.
Can the non-resident surcharge be refunded later?
Yes, in some cases. If a buyer later spends at least 183 days in the UK in the 12 months following completion, they may be able to reclaim the 2% surcharge from HMRC. A similar refund route exists for the 5% additional property surcharge if the previous main residence is sold within 36 months.
Do companies pay these surcharges differently?
Companies buying residential property generally face the 5% additional property surcharge on every purchase, and non-UK resident companies face their own residence test for the 2% surcharge. High-value corporate purchases may also fall under ATED and separate flat-rate SDLT structures -- specialist advice is essential.
Does the non-resident surcharge apply in Scotland and Wales?
The 2% surcharge described here is specific to SDLT (England and Northern Ireland). Scotland applies an 8% Additional Dwelling Supplement under LBTT and Wales has its own LTT additional-property bands, but neither has an identical non-resident surcharge structure.
Related calculators
Calculate your Mortgage
Calculate monthly mortgage payments, total interest, and full repayment cost.
Mortgage Affordability tool
Find out how much you could borrow based on your income and outgoings.
Remortgage Calculator
Compare your current mortgage deal with a new rate to see monthly savings, total interest saved, and whether remortgaging makes sense.
Calculate your Buy-to-Let
Analyse the profitability of a buy-to-let investment including tax and costs.
Disclaimer: This comparison is for general information based on 2026/27 SDLT rates and HMRC guidance on the non-resident and additional property surcharges. Residence tests and refund eligibility can be complex -- consult a conveyancing solicitor or tax adviser before completing a purchase.