The SDLT non-resident surcharge is an extra 2% added to every band when a buyer of residential property is not UK resident for SDLT purposes. It has applied since 1 April 2021, on top of any higher rates, and also to the rent element of new residential leases.
What the surcharge covers
- Freehold and leasehold purchases of dwellings in England and Northern Ireland.
- It is added to the standard rates, the higher rates and the 17% corporate rate.
- It does not apply to non-residential or mixed-use property, or to Wales and Scotland.
Who counts as non-resident for SDLT?
An individual is non-resident for SDLT if they were present in the UK for fewer than 183 days in the 12 months before the purchase. This is a separate test from income tax residence — someone can be UK resident for income tax and still pay the surcharge.
Worked examples (£400,000 home)
| Buyer | SDLT |
|---|---|
| UK resident, only home | £10,000 |
| Non-resident, only home | £18,000 |
| Non-resident, additional home | £38,000 |
Joint buyers
If any one buyer is non-resident, the surcharge applies to the whole purchase. There is an exception for spouses and civil partners: where one partner is UK resident and they are not separated, both are normally treated as UK resident.
Companies
A company is non-resident if it is not UK resident for corporation tax, or if it is a UK close company controlled by non-residents. Non-resident companies paying the flat corporate rate on a dwelling over £500,000 pay 19% instead of 17%.
Can you reclaim the non-resident surcharge?
If you become UK resident shortly after buying, you can reclaim the 2%. You must be in the UK for at least 183 days in a continuous 365-day period that starts up to 364 days before completion and ends up to 365 days after it. The claim is made by amending the return within 12 months of the filing date, or otherwise within 2 years of completion.
Residence for SDLT has detailed rules on days in the UK, Crown employees and trusts. This guide is a summary — confirm your position with your conveyancer.