Stamp Duty non-UK Residents

SDLT rates & calculations for non-UK residents

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Stamp Duty News

Stamp duty for first time buyers has been abolished for most purchasers.

Stamp duty for buy to let property has increased substantially from April 2016 following the introduction of a 3 percent surcharge.

Stamp duty for second homes has also increased as a result of the 3 percent surcharge. Mobile homes, caravans and houseboats are exempt.

Stamp duty refunds are available for home movers replacing their main residence. The original home must be sold within 3 years.

Stamp duty calculations are different in England and Northern Ireland to LBTT calculations in Scotland and LTT calculations in Wales.

Stamp Duty for Non-UK Residents

Non-UK residents will pay more in stamp duty from April 2021.

An increase to stamp duty for non-UK residents was announced by the Chancellor Rishi Sunak in the 2020 Budget.

From April 2021 non-UK residents are required to pay an extra 2 percent in stamp duty when they purchase a property in England or Northern Ireland.

Non-UK resident status is determined if someone is not present in the UK for at least 183 days in the 12 month period leading up to the purchase of a property.

Non-UK resident SDLT calculator

The stamp duty calculators below give non UK resident SDLT calculations from April 2021. The calculations reflect the end of both the stamp duty holiday on 30th June and subsequent transition period on 30th September 2021.

Calculations are shown for SDLT levels from 1st October 2021 when standard SDLT rates reverted to those in place before the stamp duty holiday.

Stamp duty calculations include the non resident surcharge of 2% applied to all rates with the exception of the zero rate threshold for additional property purchases below £40k.

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The stamp duty calculations above apply to freehold residential property located in England or Northern Ireland. The SDLT calculations show indicative levels of stamp duty for non-UK residents from April 2021. For UK based SDLT calculations please use our UK resident stamp duty calculator.

How does the non-UK resident stamp duty surcharge work?

From April 2021 anyone living overseas might need to pay an additional 2 percent in stamp duty if they buy a property in England or Northern Ireland.

For SDLT purposes a non-UK resident is someone who has spent less than 183 days in the UK over the 12 month period leading up the purchase of a property.

Anyone who is non-UK tax resident will be liable for the new surcharge. The surcharge will also apply to British Expats working and living overseas.

If someone becomes a UK resident in the 12 months after the buying a property, it may be possible to request a refund of the non-UK resident surcharge. The refund must be claimed within 2 years of the purchase.

Overseas buyers who already own a home will pay the new 2% surcharge in addition to the existing 3% charge levied on additional property purchases. This means for additional property transactions the top rate of stamp duty is now 17%.

Why was the non-UK resident stamp duty surcharge introduced?

The Government hope that the new stamp duty surcharge could take some heat out of the London property market where foreign investment is high.

This in turn could help control house price inflation which could make housing more affordable for UK residents.

The Government initially planned to use the extra stamp duty revenue to provide around 6000 new homes for the homeless.

Non-UK resident SDLT rates

SDLT rates until 30th September.

The table below shows stamp duty rates valid from 1st July 2021 until 30th September 2021.

Tax Band Normal Rate Additional Property
less than £250k 2% 5%*
£250k to £925k 7% 10%
£925k to £1.5m 12% 15%
rest over £1.5m 14% 17%
* An additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £250k the SDLT rate will be 5% on full purchase price.
This stamp duty calculator is designed to give you an idea of your stamp duty liability when buying a freehold residential property in England & N.Ireland. Stamp duty calculations are rounded down to the nearest pound.
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