The non-resident stamp duty land tax surcharge

From 1 April 2021 the rate of stamp duty land tax (SDLT) increased by 2% where a purchaser is non-resident. These rules can be surprisingly broad catching those who might suppose they were free from the increased tax burden. In this article we will explain how the new regime works and go on to explain with case studies some of the most surprising traps.

For detail see FA 2003 Sch 9A as inserted by FA 2021. Given the recent nature of the rules there is little coverage in most of the well-known practitioners’ texts. HMRC’s Stamp Duty Land Tax Manual has guidance on its view at SDLTM09850 onwards.

Overview of the rules

The non-resident 2% surcharge only applies to residential properties. If applicable the 2% increases the rate of tax for each portion of the chargeable consideration. It applies in...