Stamp Duty Land Tax (SDLT) Non-Resident Surcharge 2026
Current SDLT rules for residential property in England and Northern Ireland, including the 2% non-UK resident surcharge, 5% higher rates for additional dwellings, current residential rates, first-time buyer relief and the surcharge refund rules.
SDLT Return and Payment
Residential SDLT Rates From 1 April 2025
| Purchase Price Band | Standard Rate | Additional (+5%) | Non-Resident (+2%) | Both (+7%) |
|---|---|---|---|---|
| Up to £125,000 | 0% | 5% | 2% | 7% |
| £125,001 to £250,000 | 2% | 7% | 4% | 9% |
| £250,001 to £925,000 | 5% | 10% | 7% | 12% |
| £925,001 to £1.5 million | 10% | 15% | 12% | 17% |
| Above £1.5 million | 12% | 17% | 14% | 19% |
🌍 2% Non-Resident SDLT Test
An individual is non-UK resident for SDLT purposes if they were not present in the UK for at least 183 days during the 12 months immediately before the effective date of the transaction.
- Day Counting: A person is present in the UK on a day if they are in the UK at the end of that day.
- Scope: Days anywhere in the UK count; the test is not limited to England or Northern Ireland.
- Key Distinction: This is a special SDLT residence test and is separate from the UK Income Tax Statutory Residence Test.
🏠 5% Higher Rates for Additional Dwellings
+5% SurchargeThe higher rates generally apply when the purchaser will own more than one qualifying residential property worth £40,000 or more after the purchase and the other statutory conditions are met.
Worldwide Scope: Residential property owned anywhere in the world can count.
Replacement Main Residence: If a buyer purchases a replacement main residence while still owning the previous main residence, the higher rates normally apply initially. A refund may be available when the previous main residence is sold within 36 months.
Combination: The 5% higher rates can apply together with the 2% non-resident surcharge.
💷 Refund of the 2% Non-Resident Surcharge
2-Year Refund WindowThe buyer can potentially reclaim the surcharge by being present in the UK for at least 183 days during a continuous 365-day period within the statutory window surrounding the transaction.
🎉 First-Time Buyer Relief
All purchasers must be first-time buyers and intend to occupy the property as their main residence.
The 2% non-resident surcharge can apply to a qualifying first-time buyer.
⚖️ Important Scope Limits
Devolved Nations (Separate Taxes):- Scotland — Land and Buildings Transaction Tax
- Wales — Land Transaction Tax
- Companies and certain other non-natural persons can have separate SDLT rules.
- Transactions involving 6 or more dwellings in one transaction can fall under non-residential rates.
- Mixed residential/non-residential transactions have separate rules.
- Certain trusts have special residence and ownership rules.
SDLT Return and Payment
The solicitor or conveyancer usually submits the return and arranges payment, but the purchaser remains legally responsible for the SDLT liability and accuracy of the return.
| Delay Window | Statutory Penalty |
|---|---|
| Up to 3 months late | £100 |
| More than 3 months late | £200 |
| More than 12 months late | A tax-based penalty can apply. |
Real Statutory Worked Examples
Property Price: £700,000
Calculation: 2% of £125,000 + 4% of £125,000 + 7% of £450,000
SDLT Liability: £39,000
Property Price: £700,000
Calculation: 7% of £125,000 + 9% of £125,000 + 12% of £450,000
SDLT Liability: £71,500
Frequently Asked Questions: Stamp Duty Land Tax (SDLT) Non-Resident Surcharge 2026
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Frequently Asked Questions
An individual buying residential property in England or Northern Ireland is generally treated as non-UK resident for SDLT if they were present in the UK for fewer than 183 days during the 12 months ending with the day before the transaction's effective date. The 2% surcharge then applies to the relevant residential SDLT rates.
No. SDLT uses its own transaction-specific residence test. It is separate from the Statutory Residence Test used for Income Tax and other purposes.
Yes. Where both apply, the combined rates are 7%, 9%, 12%, 17% and 19% across the residential bands from 1 April 2025.
Potentially. You generally need to spend at least 183 days in the UK during a qualifying continuous 365-day period within the statutory window around the purchase. The SDLT return can generally be amended within 2 years of the transaction's effective date.
Yes. The higher-rate rules can take residential properties owned anywhere in the world into account. A buyer can therefore be subject to the 5% higher rates even if the other property is overseas.
The SDLT return and any tax due must normally be filed and paid within 14 days of the transaction's effective date, usually completion.
Common Taxpayer Misconceptions
✓ Rule: The higher-rate surcharge is 5 percentage points for transactions subject to the rates from 31 October 2024.
✓ Rule: The standard residential nil-rate threshold is £125,000 for transactions from 1 April 2025.
✓ Rule: SDLT has its own 183-day test based on the 12 months before the transaction.
✓ Rule: Worldwide residential property ownership can be relevant to the higher-rate test.
✓ Rule: A qualifying individual can potentially reclaim it after satisfying the post-purchase residence test.