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SDLT surcharge for non-residents


Stamp duty land tax (SDLT) applies to purchases of most land and buildings in England and Northern Ireland. Wales and Scotland impose different land taxes.

For purchases of residential property completed from 1 April 2021, a 2% surcharge will apply where any of the joint purchasers are not UK-resident. This covers individuals, partnerships, companies and trusts that are defined as not UK resident at the time of the purchase. The surcharge applies on top of the 3% surcharge on the purchase of second homes.

A complication is that the definition of UK residence for SDLT is different from the statutory residence test which defines non-residence for other taxes. This means that it is possible for an individual who is UK tax resident to be non-resident for SDLT purposes. Individuals who are returning to the UK could be caught by this new surcharge.

Please ask us for guidance before committing to a property purchase.

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