Buyer Guide: Stamp Duty
UK Stamp Duty for Non-Residents.
Know the cost before exchange.
Stamp Duty Land Tax is often the largest cost after the price itself. For a non-UK resident, surcharges can add several percentage points — on a £750,000 additional property, the 2% non-resident surcharge alone is £15,000.
The Current Structure
What overseas buyers can pay
The non-resident surcharge was introduced in April 2021, the higher-rates surcharge rose to 5% in October 2024, and the standard bands changed in April 2025. Rates can change at any Budget.
Up to three layers can apply
A non-UK resident buying an additional residential property in England can pay the standard SDLT bands, the 5% higher-rates surcharge for additional dwellings, and the 2% non-resident surcharge. Each surcharge applies across the whole price.
Around £80,000 on a £750,000 purchase
On a £750,000 purchase, a non-resident who already owns residential property elsewhere would pay about £80,000 (an effective rate of about 10.7%). A non-resident with no other property would pay about £42,500; a UK resident replacing their main home about £27,500. Your solicitor confirms the exact figure.
The non-resident surcharge may be refundable
If the buyer subsequently meets the UK presence test (broadly, 183 days in the UK in a continuous 12-month period around the purchase), a refund of the 2% surcharge can be claimed within the time limits. The test is based on presence, not citizenship.
Ownership structure matters
Buying personally, jointly or through a company changes the SDLT, ongoing tax (including ATED for companies) and inheritance tax position. These decisions should be taken with a UK tax adviser before exchange.
Rate Reference
SDLT bands: standard, additional rate, and non-resident surcharge
| Purchase Price Band | Standard Rate | Additional Rate (2nd home / BTL) | Non-Resident Surcharge |
|---|---|---|---|
| Up to £125,000 | 0% | 5% | +2% |
| £125,001 – £250,000 | 2% | 7% | +2% |
| £250,001 – £925,000 | 5% | 10% | +2% |
| £925,001 – £1,500,000 | 10% | 15% | +2% |
| Over £1,500,000 | 12% | 17% | +2% |
Rates in force from 1 April 2025 for residential property in England and Northern Ireland. "Additional rate" includes the 5% higher-rates surcharge. The non-resident surcharge applies on top in every band. Reference only — not tax advice. Confirm current rates with your solicitor.
Advisory Note
Structuring considerations before exchange
The SDLT residence test is separate from the income tax Statutory Residence Test and is based on days of presence in the UK, not nationality. British citizens living abroad can be non-resident for SDLT purposes.
For a £1,000,000 purchase, a non-resident who already owns residential property elsewhere would pay about £113,750; a non-resident with no other property about £63,750; a UK resident buying their only home about £43,750. That difference belongs in any return calculation from the outset.
Buying through a company brings different SDLT rules and, for higher values, the Annual Tax on Enveloped Dwellings (ATED). It is rarely simpler, and should only be considered with specialist advice.
CM2 does not provide tax advice. The figures above are illustrations. Your solicitor or tax adviser should confirm the SDLT for your specific purchase, ownership structure and residence position; CM2 can make introductions. You can also use the CM2 SDLT calculator as a guide.
Private Consultation
Factor the full cost into your acquisition
Tell us your budget, intended ownership and residence position. CM2 will include an indicative cost picture in its assessment and, where relevant, introduce you to a specialist tax adviser.