If you’re not UK resident and you buy a home in England or Northern Ireland, you’ll pay an extra 2% stamp duty on the whole price. Own another home anywhere in the world and a further 5% can apply on top. On a £1 million purchase, the difference between a UK first-time mover and a non-resident with a second home is around £70,000.
How does the 2% surcharge work?
It’s added to every band of the normal rates. Here’s a £1,000,000 purchase in England, with standard residential rates first:
- 0% on the first £125,000, then 2% to £250,000: £2,500
- 5% from £250,001 to £925,000: £33,750
- 10% from £925,001 to £1,000,000: £7,500
- Standard total: £43,750
A non-resident buying their only home pays a further 2% of £1,000,000, so £20,000 more. Total: £63,750.
If that buyer already owns a property elsewhere, the 5% higher rate adds another £50,000. Total: £113,750. These are the rates for purchases in England and Northern Ireland from 1 April 2025, unchanged at the October 2026 Budget.
Who counts as non-UK resident?
For individuals, the stamp duty test is different from the income tax test. Broadly, you’re treated as non-resident if you’ve spent fewer than 183 days in the UK during the 12 months before you buy. If you buy jointly and any one buyer is non-resident, the surcharge usually applies to the whole purchase, although a married couple or civil partners are treated as UK resident if one of them is.
Companies controlled by non-UK residents can also fall within the surcharge.
Can I get the surcharge back?
Possibly. If you then spend at least 183 days in the UK in a continuous 12-month period that falls within the year either side of your purchase, you can usually reclaim the 2%. The claim generally has to be made within two years of buying, and joint buyers can only claim once all of them qualify. Families relocating to London often qualify, so keep a record of your days in the UK.
Does it apply in Scotland and Wales?
No. Scotland and Wales have their own property taxes and don’t charge this surcharge. They do have their own additional dwelling rates, and you can check figures for all three with our stamp duty calculator.
How does this affect my mortgage?
Stamp duty usually comes from your own funds, so it sits alongside the deposit in your budget. On a £1 million purchase with a 25% deposit, a non-resident buyer with another home needs around £363,750 in cash before fees. We build that into the plan from the first call. See our international mortgages page, or start with the international mortgage application.
Frequently asked questions
Do British citizens living abroad pay the 2% surcharge?
Does the surcharge apply to buy-to-let purchases?
Does first-time buyer relief apply to non-residents?
This article is general information, not tax advice. Stamp duty rules change and depend on your circumstances, so confirm your position with a solicitor or tax adviser. The Financial Conduct Authority does not regulate tax advice. Your home may be repossessed if you do not keep up repayments on your mortgage.
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