Understanding Stamp Duty Land Tax for Non-Residents

Stamp Duty Land Tax for non-residents is a crucial consideration when buying residential property in England or Northern Ireland. If you are not present in the UK for at least 183 days during the 12 months before the purchase, you are classed as not a UK resident for Stamp Duty purposes. This can have a significant impact on the amount of tax you pay.

Who Is Considered a Non-Resident for SDLT?

To determine your residency for Stamp Duty Land Tax (SDLT), HMRC looks at your physical presence in the UK. You are a non-resident if you have not spent at least 183 days in the UK in the 12 months before your property purchase.

This rule applies even if you are a British citizen or have strong UK ties. The test is purely based on the number of days physically spent in the UK.

The 2% Surcharge for Non-Residents

If you are classed as a non-resident for SDLT purposes, you will usually need to pay a 2% surcharge on top of the standard SDLT rates when buying residential property in England or Northern Ireland.

This surcharge applies regardless of whether you are buying the property for personal use or as an investment. However, there are limited exceptions depending on the nature of the property, the type of buyer, or the specific circumstances of the transaction.

Can You Claim a Refund of the Surcharge?

In some cases, it is possible to reclaim the 2% surcharge if you later meet the UK residency criteria. To qualify for a refund, you must be physically present in the UK for at least 183 days during any continuous 365-day period either:

• Ending on the date of the property purchase, or

• Beginning immediately after the date of the purchase

You must make your claim for repayment within two years of the effective date of the transaction.

Why Professional Advice is Essential

The rules surrounding Stamp Duty Land Tax for non-residents are detailed and often misunderstood. Many buyers assume that being a British passport holder or owning other UK property exempts them from the surcharge—this is not the case.

There can also be complications if multiple buyers are involved and not all of them meet the residency requirements. Errors can be costly, especially if deadlines for refunds are missed.

How Lewis Brownlee Can Help

At Lewis Brownlee, our experienced tax team offers personalised advice on Stamp Duty Land Tax for non-residents. Whether you are planning to buy a UK property or have already purchased and want to explore a refund, we are here to help.

We take time to understand your circumstances and guide you through the complexities of UK tax law, ensuring that you make informed, tax-efficient decisions.

Please contact us for tailored support before making a property purchase.