The 2% non-resident surcharge applies on top of standard SDLT rates (and the 3% additional dwelling surcharge where applicable). Applies to individuals and companies.
Frequently Asked Questions
Who pays the SDLT non-resident surcharge?
The 2% non-resident SDLT surcharge applies to individuals and companies that are non-resident in the UK for SDLT purposes and purchase a residential property in England or Northern Ireland. It was introduced on 1 April 2021 and applies on top of standard SDLT rates. It does not apply in Scotland (LBTT) or Wales (LTT), which have their own rules.
What counts as non-resident for SDLT?
For SDLT purposes, an individual is non-resident if they have not been present in the UK for at least 183 days in the 12-month period before the effective date of the transaction. The test looks at the 12 months before completion. Spouses and civil partners are tested jointly — if either is non-resident, the surcharge applies.
Can the SDLT non-resident surcharge be refunded?
Yes. If you subsequently spend 183 or more days in the UK during the 12-month period ending on the effective date of the transaction (looking forward from completion), you can claim a refund. The claim must be made within two years of the effective date. This is useful if you move to the UK shortly after buying.
Does the non-resident surcharge apply to companies?
Yes. A non-UK resident company purchasing a residential property must pay the 2% surcharge. Additionally, companies (regardless of residency) purchasing dwellings over £500,000 may also be subject to ATED. Professional tax advice is essential for corporate property purchases.
How do I claim a non-resident SDLT refund?
To claim a refund, submit an amendment to your original SDLT return within two years of the effective date of the transaction. You will need to demonstrate that you met the 183-day UK presence test in the relevant 12-month period. Your solicitor or tax adviser can assist with the claim. HMRC processes refunds within 15 working days.