17 Mar 2021

2% SDLT surcharge for non-residents

Residential SDLT is set to become more complex from 1 April 2021 with the planned introduction of the new 2% surcharge for non-UK resident purchasers of residential property in England and Northern Ireland.

The 2% surcharge will apply to most purchases of freehold and leasehold interests. It will apply across all residential rates of SDLT including the rates for first time buyers and purchasers of additional dwellings bringing the maximum rate to 17% in some cases.

The Statutory Residence Test will not apply for SDLT purposes, instead the proposed residence test for individuals is a UK day count; an individual will be treated as a non-UK resident if they have spent fewer than 183 days in the UK during the period of 12 months ending with the date of the transaction in question. However, an individual who subsequently spends at least 183 days in the UK during the 12-month period starting on the date of the transaction in question, will be eligible for a refund of the surcharge paid.

A company will be non-UK resident if they are not UK resident for Corporation Tax purposes at the date of purchase. Special rules will apply for close companies that are UK resident but are under the control of non-UK resident persons.

A Trust will be non-UK resident if any trustee is non-UK resident under the SDLT residence tests except for bare trust and life interest trusts.

This area of SDLT is complex and advice should be sought from our specialist SDLT team. Please get in touch if you have any questions.

Get in touch

Related insights

HMRC’s consultation on transfer pricing: what you need to know

30 May 2025

Read

UK abolishes non-domicile tax status in 2025: What you need to know

27 May 2025

Read
An office worker sits in front of a computer whilst looking at a notepad with his mobile phone held to his ear.

Payrolling benefits in kind FAQs

21 May 2025

Read

New UK-EU agreements – What this means for British businesses

20 May 2025

Read

FireText Communications sold to Norwegian buyer

20 May 2025

Read
Two colleagues deep in thought discussing what they see on a laptop

Redundancies and tax considerations for employers in the South West

19 May 2025

Read

R&D claim tribunal: Realbuzz case

15 May 2025

Read
Employees of an international law firm sitting at a large table in a well-lit conference room.

Salaried members rules update

14 May 2025

Read

US-China tariffs: pause and reduction

13 May 2025

Read

Inheritance tax: planning for changes to business property relief

12 May 2025

Read
A view across the Thames river towards Big Ben and the Houses of Parliament, the Union Jack is raised high against a sky of purple hues.

US-UK trade deal: What you need to know

9 May 2025

Read

The India-UK free trade agreement: Key actions for UK businesses

7 May 2025

Read