Who the surcharge applies to
The 2 percent surcharge applies to non-UK resident purchasers of residential property in England and Northern Ireland. It is based on a residence test specific to SDLT, not on your nationality or your status for income tax. The core rule for individuals is the 183-day test: if you were present in the UK on fewer than 183 days in the 12 months ending with the purchase date, you are treated as non-resident.
It applies to individuals, but also to companies, trusts and partnerships under their own rules. Where a property is bought jointly, if any one of the buyers is non-resident, the surcharge generally applies to the whole purchase (with limited exceptions for spouses and civil partners).
Scotland and Wales operate their own land taxes (LBTT and LTT) and do not have this particular surcharge, so it is specific to the SDLT regime in England and Northern Ireland.
It stacks on top of other rates
The 2 percent is added to whatever SDLT you would otherwise pay, including the additional-property surcharge. A non-resident buying a second home pays both surcharges on top of the standard rates.
How the surcharge stacks
The 2 percent is layered on top of the rates that would apply to a UK resident.
| Buyer scenario | Surcharges that apply |
|---|---|
| UK resident, main home | Standard rates only |
| Non-resident, main home | Standard rates plus 2 percent |
| UK resident, additional property | Standard rates plus additional-property surcharge |
| Non-resident, additional property | Standard rates plus additional-property surcharge plus 2 percent |
| Non-resident first-time buyer | First-time buyer rates plus 2 percent |
Key points to remember
- The surcharge is 2 percent on top of all other SDLT rates.
- Residence is decided by days in the UK, not by nationality.
- The core test is fewer than 183 days in the UK in the 12 months before purchase.
- For joint purchases, one non-resident buyer can trigger it on the whole price.
- It applies in England and Northern Ireland only, not Scotland or Wales.
Claiming a refund if your status changes
Check the 183-day window
You may qualify if you spend at least 183 days in the UK in a continuous 365-day period around the purchase.
Gather evidence
Keep records of your UK presence, such as travel dates and residence documents.
Apply to HMRC
Submit a refund claim once you meet the residence condition after completion.
Mind the deadline
Claims must usually be made within two years of the effective date of the transaction.
Take advice if unsure
The residence tests are detailed, so a tax adviser can confirm your position.