Stamp duty rates for

non-resident individuals only

Stamp Duty Land Tax (SDLT) is a tax imposed on the purchase or acquisition of property or land over a specific price threshold in England and Northern Ireland. Non-residents are subject to an additional 2% surcharge on all residential properties valued at more than £40,000. For properties that are second homes and exceed £40,000, the rate increases by 3% above the standard rates, including the 2% surcharge. However, the tax rates differ for properties located in Scotland or Wales.

When a non-resident purchases a property with a UK resident, the surcharge is applicable to the entire purchase, not just the portion attributable to the non-resident individual.

The definition of non-resident for SDLT purposes differs from that of other taxes. An individual is considered non-resident for SDLT if they have not been present in the UK (including Scotland or Wales) for at least 183 days during the 12 months preceding the purchase date. However, if the individual spends at least 183 days in the UK during any continuous 365-day period within the 2 years following the purchase, they can claim a refund of the 2% surcharge. This provision applies to individuals returning to or moving to the UK after residing abroad.

Stamp Duty Land Tax Rates for residential properties in England and Northern Ireland (Non-residents only) from 23rd September 2022

If you are acquiring an additional property, higher rates of SDLT will be applicable. An additional 3% above the standard rates of SDLT is charged if you already own a property. These rates do not apply to property purchases under £40,000 or to purchases of caravans, mobile homes, and houseboats.

It is strongly recommended to review the FAQs provided to understand the SDLT implications for your specific situation before proceeding with a property purchase. If you still have questions, it’s essential to seek clarification rather than making assumptions.

Transferring Property with an outstanding mortgage

When joint owners of a property decide that one of them will assume sole ownership, including any outstanding mortgage, SDLT may be due if the share of the outstanding mortgage plus any consideration exceeds £40,000. However, the 3% additional SDLT rate does not apply when an individual purchases a property from their spouse/civil partner, provided they are cohabiting. No SDLT is payable on a property gifted, provided there is no outstanding mortgage. If the mortgage exceeds £40,000, SDLT may be applicable.

Land Transaction Tax Rates for residential properties in UK

For information on the relevant rates in Scotland and Wales, please refer to the following links:

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