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Non-UK Resident Stamp Duty Calculator

Stamp duty calculator

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This calculator will determine the Stamp Duty Land Tax (SDLT) owing for residential purchases (including lease premium). Stamp Duty Land Tax (SDLT) is a tax paid by the buyer of a UK residential property. The stamp duty rate ranges from 2% to 12% of the purchase price, depending upon the value of the property bought, the purchase date and whether you are a first time buyer or multiple home owner. A 2% surcharge is added to each of these rates for buyers who are non-UK residents. If you are a non-UK resident, please tick the ‘I am a non-UK resident’ box."

What is overseas buyer/non-UK resident stamp duty?

Stamp Duty Land Tax (SDLT) is a tax paid by the buyer of a UK residential property. The rate of this tax ranges depending upon the value of the property bought, the purchase date and whether you are a multiple home owner. You can read more about current stamp duty rates on our Stamp Duty Calculator page.

From 1 April 2021, a 2% surcharge was added to stamp duty rates for buyers who are overseas buyers/non-UK residents. Below, we break down what these rates are and exactly who these rates apply to.

What are the rates of Stamp Duty for non-UK residents?

From 1st April 2021, the new 2% rate will be introduced on the purchase of residential property in England and Northern Ireland. This surcharge is added to each of the current rates, including the 3% surcharge on additional homes.

There may be transitional rules for transactions where contracts have been exchanged before March 11th 2020 but do not complete until or after April 1st 2021 and for contracts that are “substantially performed” before April 1st 2021 but do not complete until after April 1st 2021.

 

For the purchase of a main residence
Purchase price bands (£) Rate (%) Non-UK Rate (%)
Between £40,001 and £125,000 0%  2%
Between £125,001 and £250,000 2%  4%
Between £250,001 and £925,000 5%  7%
Between £925,001 and £1.5 million 10%  12%
Over £1.5 million 12%  14%
For the purchase of 'additional' property
Purchase price bands (£) Rate (%) Non-UK Rate (%)
Between £40,001 and £125,000 3%  5%
Between £125,001 and £250,000 5%  7%
Between £250,001 and £925,000 8%  10%
Between £925,001 and £1.5 million 13%  15%
Over £1.5 million 15%  17%

Who counts as an overseas buyer/non-UK resident?

An individual can be classed as a UK resident if they have spent 183 days in the UK (judged by their location at midnight) over any consecutive 365-day period beginning 12 months before the transaction and ending 12 months after.

This is different to the UK statutory residence test which is calculated by how much time is spent in the UK during the tax year. With this in mind, an individual could be considered a UK resident for income tax but a non-UK resident for stamp duty.

If the criteria above has not been met then the individual is classed as a non-UK resident and the surcharge must be paid no later than 14 days after the completion. 

Does the surcharge count if there is more than one buyer? 

If a property is bought by a couple who are married or are in a civil partnership and one of them is a UK resident then they do not need to pay the surcharge. However, if a purchase is made by more than one buyer and one of them is a non-UK resident, the surcharge will apply to the transaction.

It’s also important to note that in the case of two individual buyers, the surcharge will apply to the whole transaction, not just the share that is attributable to the non-UK resident.

What about private companies and trusts?

Similar rules apply for companies that purchase a property in the UK. If a company is controlled by one or more non-UK resident participators then the company is considered a non-UK resident.

In addition to this, a non UK based company cannot be exempt from the surcharge if the company is controlled by one or more UK residents.

This same principle applies to trusts and partnerships. I.e. if one partner, member or beneficiary is a non-UK resident, then the surcharge applies.

However, there are areas of complexity in some of these new laws where private companies are concerned so they may be subject to change or amendments in the future. You can find more details on this legislation in the government policy paper.

Are there any exemptions?

The 2% surcharge will not apply to certain transactions, including:

  • Purpose built student accommodation
  • Residential property that is subject to the circa 5% commercial property rates
  • Acquisitions of leases for less than 21 years
  • Reversionary interests subject to a lease with more than 21 years to run
  • Non-resident individuals who are “Crown employees” such as members of the armed forces posted overseas are also exempt.

Can the surcharge be reclaimed if a non-UK resident becomes a UK resident?

If an individual pays the non-UK resident surcharge but then satisfies the conditions to become a UK resident in the 12 months after the purchase, they can file for a refund. The SDLT return must be amended within two years of the purchase to reclaim the surcharge.

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