Stamp Duty surcharge for non-UK residents

If you have been living outside the UK and are buying a home in England or Northern Ireland, you will usually pay a 2% surcharge on top of the standard Stamp Duty Land Tax rates. The surcharge was introduced on 1 April 2021 and applies to purchases of both freehold and leasehold homes, on top of all residential rates, including bands where the standard rate is zero¹.

The test is about your time in the UK, not your nationality or where your money sits. You are generally classed as a non-UK resident for Stamp Duty if you have not been in the country for at least 183 days, or six months, during the 12 months before you bought your home⁴. That catches people moving back to the UK, people buying a home here before they relocate, and people who work abroad but keep a base in Britain.

The surcharge stacks with the higher rates that apply to second homes and buy-to-let. An overseas resident buying an investment property pays 7% more than the standard rates for UK home movers: the 5% additional property surcharge plus the 2% non-resident surcharge⁵. If you become a UK resident within 12 months after your purchase, you may be able to claim the 2% back⁷.

Non-UK resident surcharge: 2% on top of standard rates

The surcharge is a flat 2% added to every band of Stamp Duty Land Tax that applies to your purchase. It is not a separate tax with its own thresholds; it sits on top of the rates you would otherwise pay, and it applies to both freehold and leasehold properties³. HMRC's own statistics describe it as "a 2% surcharge for NRSDLT" introduced on the purchase of properties by non-residents from 1 April 2021².

Because it is added to each band, the effect is felt across the whole price rather than only at the top. On a purchase where the standard rate in a band is zero, the surcharge still applies, so the first slice of the price is not free in the way it would be for a UK resident buyer. The higher rates legislation sets out the additional property bands separately: 7% on the portion between £125,000 and £250,000, and 10% on the portion between £250,000 and £925,000¹⁰.

The surcharge is not a one-off penalty that disappears once you arrive. It is assessed at the point of purchase, based on your residence history in the 12 months before completion. That is why the refund route matters: the rules recognise that someone buying on the way back to the UK may not yet meet the residence test, and allow them to reclaim the 2% if they go on to meet it¹.

Who counts as non-UK resident: the 183-day test

For Stamp Duty purposes, you are usually a non-UK resident if you have spent less than 183 days in the UK in the 12 months before you buy¹¹. The 183-day figure is the same threshold used in the Statutory Residence Test, where being in the UK for 183 or more days in a tax year makes you a UK resident with no need to consider any other tests¹².

The two tests are not identical, though, and it is worth being clear about which one applies. The Statutory Residence Test has several automatic overseas tests, including working full-time overseas with fewer than 91 days in the UK in the tax year, or fewer than 46 days where you were not UK resident in any of the previous three tax years¹². Those tests determine your tax residence for income tax. The Stamp Duty surcharge uses its own 12-month look-back from the date of purchase, which can produce a different answer for someone who has just moved back.

In practice, the people most likely to be caught are those buying before they return, those who split their time between the UK and another country, and those whose work keeps them abroad for most of the year. If you are close to the 183-day line, the exact dates of your travel in the 12 months before completion are what decide it, so keep records.

Buying a second home or buy-to-let from abroad: up to 7% extra

The surcharges stack. In England and Northern Ireland there is a 5% surcharge on buy-to-let, holiday or second homes⁵. Overseas residents buying an investment property pay stamp duty at 7% more than the standard rates for home movers, which is the 5% additional property surcharge plus the 2% non-resident surcharge⁵.

The additional property surcharge applies when you are technically buying a second home, even if it is the one you will live in¹³. That catches people who are relocating but have not yet sold, or do not intend to sell, their previous home. The surcharge rose from 3% to 5% on 1 April 2025, alongside other threshold changes¹⁴.

To see the scale, the cost of buying calculator used by the Home Owners Alliance gives an example: an additional property such as a buy-to-let at £292,000 would carry stamp duty costs of £19,200¹⁵. That figure reflects the higher rates and the additional property surcharge; a non-resident buyer would add the 2% on top.

Where the surcharge does not apply: Scotland and Wales

The 2% non-UK resident surcharge does not apply to purchases of land or buildings in Scotland or Wales⁹. Property tax is devolved, and both nations run their own systems: Land and Buildings Transaction Tax in Scotland, and Land Transaction Tax in Wales. Stamp duty costs are different in Scotland and Wales¹⁵.

That does not mean an overseas buyer pays nothing extra. Surcharges for additional properties differ in Scotland and Wales, although the rules around replacing a main residence still apply¹⁶. Other similar charges may apply¹⁷. If you are buying in Scotland, the relevant tax is Land and Buildings Transaction Tax, and in Wales it is Land Transaction Tax. The Additional Dwelling Supplement is the Scottish equivalent of the second home surcharge.

For buyers in Northern Ireland, the position is the same as England: Stamp Duty Land Tax applies, and so does the 2% surcharge. The Stamp Duty Land Tax page covers the underlying rates.

Paying and filing: the 14-day deadline

Stamp duty must be paid within 14 days of completion, and will usually be handled by your solicitor¹⁵. The return itself must be sent within 14 days of the effective date of the transaction, even if you do not owe any tax⁸. As the buyer you have 14 days to pay any stamp duty you owe¹⁹.

If you are represented, your solicitor or conveyancer normally files the return using the 11-character transaction reference²⁰. If you are not represented, you must use the SDLT1 paper return and send it to HMRC by post; a representative filing on behalf of a client should do it online²¹.

Refunds: getting the 2% back

If you were not resident in the UK and paid a surcharge to purchase residential property in England or Northern Ireland, but are now a UK resident for the purposes of SDLT, you may be able to apply for a refund of the 2% surcharge¹. The maker guidance puts it more simply: if you become a UK resident within 12 months after your purchase, you may be able to claim a stamp duty surcharge refund of the 2%⁷.

The refund is claimed from HMRC. You will need to include the Unique Transaction Reference number (UTRN), the full name of each of the buyers, signatures of all the buyers named on the return, the reason why you think you have overpaid, the parts of the SDLT return which are wrong, revised figures confirming the amount of refund due, the contract for the land transaction, and the instrument by which the transaction was effected¹.

There is a separate refund route for the higher rates on additional properties. To apply, you need your details, the main buyer's details if not your own, details of the property that attracted the higher rates including the effective date of purchase and the SDLT unique transaction reference number, details of the previous main home sold including the effective date of sale, address and buyer's name, the amount of tax paid, the amount of tax to be repaid, and the bank account and sort code details of the payment recipient²². You can apply online, or fill in form SDLT16 and print and post it to HMRC using the postal address shown on the form; the form cannot be saved part-completed²².

The equivalent claim for second homes requires your personal details, the main buyer's details if different, details of the property you paid higher-rate stamp duty on including the purchase date and transaction reference number, details of the former main home you sold including sale date, address and buyer's name, the amount of stamp duty originally paid, the amount you are claiming back, and bank account and sort code for the refund payment²³.

What happens if I pay Stamp Duty late?

HMRC charges a late filing penalty and interest if your SDLT return is not filed on time²¹. Interest is also charged on late payment once the payment date has passed²⁴. In Scotland, Revenue Scotland may charge penalties and interest if you do not submit or pay your tax return on time²⁵.

The deadline rules for weekends and bank holidays are worth knowing. HMRC's guidance for Self Assessment says that if the payment deadline falls on a weekend or bank holiday, the payment needs to reach HMRC on the last working day before it, unless it is made by Faster Payments²⁶. The same principle applies to other deadlines: where a period ends on a Saturday, Sunday or bank holiday, the calendar month ends on the next working day²⁷. Banks apply similar logic to direct debits, taking payment on the next working day with no late payment fees²⁸.

If you are struggling to pay, TaxAid provides help for people on low incomes with tax problems²⁴. The paying Stamp Duty late page covers the penalties in more detail.

Do I pay the surcharge on a property I inherit?

Usually there is no Stamp Duty to pay on an inherited property, even if you take on the mortgage attached to it, though you might have to pay Inheritance Tax¹¹. That is because an inheritance is not a purchase for Stamp Duty purposes.

There is a specific rule for jointly inherited dwellings. A person who jointly inherits a major interest in a dwelling with a beneficial share not exceeding 50% is not treated as having the major interest for three years from the inheritance¹⁰. That matters if you inherit a share of a property and then buy another home within that window: the inherited share may not count against you for the additional property surcharge.

Where a parent helps a child onto the property ladder by joining a mortgage, the position is different. If the parent already owns their own home, they will need to pay the second property stamp duty surcharge, which can run to thousands of pounds²⁹. That is a cost of joint borrowing, not of inheritance.

Getting help

For free, impartial guidance on Stamp Duty and the buying process, MoneyHelper is the government-backed service. The costs of buying a house page sets out the other expenses that sit alongside the tax, and the Stamp Duty higher rates on second homes and additional properties page covers the additional property surcharge in full.

If you are buying from abroad and are not sure whether the surcharge applies to you, a solicitor or conveyancer handling the purchase can confirm the position based on your travel dates. The conveyancing page explains what that work involves.