Do Non-UK Residents Pay SDLT? The 2% Surcharge Explained (2026)

Short answer: Yes. As at 9 August 2026, non-UK residents buying UK residential property pay SDLT at the standard residential rates plus a 2% non-resident surcharge — and an extra 5% if it is an additional dwelling. So a non-resident buying a second home can face SDLT of up to 19%.

The non-resident surcharge

Since 1 April 2021, a 2% surcharge has applied to purchases of UK residential property by non-UK residents. It sits on top of the standard residential SDLT rates — and on top of the 5% additional dwelling surcharge where the property is a second home or buy-to-let.

The combined rates

For a non-UK resident buying a main residence in 2026-27, the rates (including the 2% surcharge) are:

Band	Rate
£0 – £125,000	2%
£125,001 – £250,000	4%
£250,001 – £925,000	7%
£925,001 – £1.5m	12%
Over £1.5m	14%

For a non-resident buying a second home or buy-to-let, add the 5% additional dwelling surcharge too — pushing the top rate to 19%.

Who counts as non-resident?

Broadly, an individual is treated as non-resident for SDLT purposes if they are not UK resident for income tax purposes in the tax year of the transaction, and were not UK resident in any of the 365 days ending with the date of the transaction. There are special rules for individuals who move in or out of the UK during that period.

Companies are non-resident if they are incorporated outside the UK, or if incorporated in the UK but carrying on a trade through a permanent establishment outside the UK at the time of the transaction.

Practical example

A non-UK resident buys a £1 million flat in London as a second home in 2026-27:

• Standard + ADS + non-resident surcharge rates apply
• The SDLT is roughly £138,000 — compared with about £73,750 for a UK-resident buying the same property as a main residence.

The 2% surcharge alone adds about £20,000 to the bill at this price point.

Is there any relief?

The non-resident surcharge applies even where the buyer intends to move into the property. However, careful structuring — for example on mixed-use transactions that can access the lower non-residential rates (top rate 5%) — can sometimes reduce the overall charge. Company purchases of dwellings worth £500,000 or more are also caught by the 15% flat rate, on top of which the 5% ADS and 2% surcharge can apply.

Legislation

The non-resident surcharge is in Schedule 9A, Finance Act 2003, and took effect from 1 April 2021. The additional dwelling surcharge is in Schedule 4A FA 2003 (at 5% from 31 October 2024). The 15% company rate is at Schedule 4A, paragraph 4.

How Newshams can help

Newshams Tax Advisers provides specialist SDLT planning for non-resident and international buyers of UK residential and commercial property. Contact us on +44 (0) 800 211 8657 or enquiries@newshams.com.