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.

Annual Tax on Enveloped Dwellings (‘ATED’) is a charge due on a dwelling owned by a company, partnerships with at least one corporate member, or an investment scheme.

What is a dwelling?

A dwelling is a property that is:

• Used wholly or partly as a residence
• In the process of being adapted (or constructed) into a residence.
• Undeveloped land (only subject to ATED in certain conditions)

ATED Return Requirements

For the year 1 April 2025 to 31 March 2026, ATED returns must be filed on or before 30 April 2025.

The ATED charge applies when the dwelling exceeds a taxable value. This is currently set as £500,000 in 2025-26

For 2025-26, the taxable value of a dwelling is its value as of 1 April 2022. If a dwelling is acquired after this date, the cost will be the value.

What if I don’t submit my ATED return on time?

There are penalties due for any ATED returns that are not submitted by the 30 April deadline and any payments due not made by the date.

The following table outlines the penalties incurred for not filing the ATED Return and/or not paying the tax:

What are the current charges for ATED in 2025/26?

The current charges are as follows:

These charges are only applicable if the dwelling does not qualify for any ATED reliefs.

Are there any reliefs?

There are various reliefs provided to any dwellings during the tax year. Conditions must be met.

Reliefs may be claimed for:

1. Property Rental Businesses
2. Dwellings opened to the public
3. Property Developers
4. Property traders
5. Financial institutions acquiring dwellings in the course of lending
6. Occupation by certain employees or partners
7. Farmhouses
8. Providers of social housing.

How we can help

Understanding whether your property qualifies for any reliefs or whether there may be an ATED charge due can be daunting. It is essential to understand whether your dwelling is subject to ATED ahead of 30 April 2025.

At Lewis Brownlee, our tax specialists can help you:

• Review your tax position.
• Identify any reliefs available to you
• Submit your ATED Return ahead of the 30 April 2025 deadline.

If you need assistance on your ATED return, get in touch with our team today.

Major changes to furnished holiday let tax rules will come into effect from April 2025. These furnished holiday let changes will remove the special status that such properties have enjoyed for decades.

Understanding these furnished holiday lets tax changes is essential for anyone who owns or operates such properties.

Key Changes to Furnished Holiday Lets Tax

The following changes have been proposed:

• Finance Cost Restriction

Applying the finance cost restriction rules means that loan interest will be restricted to basic rate for Income Tax. This aligns with the treatment of residential buy-to-let properties.

• Capital Allowances Changes

The new rules remove capital allowance rules for new expenditure. They allow replacement of domestic items relief instead.

Any unused capital allowance pool can be carried forward and writing down allowances claimed each year.

This represents a significant shift in how owners can claim tax relief on items within the property.

• Withdrawal of Capital Gains Tax Reliefs

The changes withdraw access to  Business Asset Disposal Relief (formerly Entrepreneurs’ Relief).

• Pension Contributions Impact

FHL income will no longer be included within relevant UK earnings when calculating maximum pension relief. This could affect how much some owners can contribute to their pensions.

• Losses

Any losses incurred by the FHL in the current year or carried forward from previous years will be treated as losses of the ongoing UK or Overseas property business going forward. This means the losses can be set off against other property income for individuals, or against other income for companies in the following year.

Planning Considerations

If you currently operate furnished holiday lets, you should consider:

• Whether to dispose of properties before the rules change
• The impact on your pension contribution capacity

How We Can Help with Furnished Holiday Lets Tax

At Lewis Brownlee, our property tax specialists can help you:

• Navigate these significant furnished holiday lets tax changes
• Assess whether accelerating disposal before April 2025 would be beneficial
• Understand the tax impact of these changes on your specific properties

Contact us today to discuss how these furnished holiday lets tax changes might affect your property investments and what steps you can take to prepare.