HM Treasury has published a response to ‘Stamp Duty Land Tax: non-UK resident surcharge consultation’ on the introduction of a new surcharge on non-UK residents purchasing residential property in England and Northern Ireland, from 1 April 2021.

It is proposed that a 2% surcharge would be added on top of the existing Stamp Duty Land Tax (SDLT) rates and will apply to both non-residential individuals and non-natural persons.

The consultation received 78 responses and the government had 13 meetings with a variety of stakeholders to better understand the views of the proposed surcharge.

  • Several respondents believed the surcharge would support homeownership.
  • Many of the respondents spoke positively of the government's decision to favour simplicity, where possible when designing the new surcharge.
  • There were concerns that the surcharge could have a negative impact on housing supply and affect the UK’s reputation as a destination for inward investment.

The government considers that a 2% surcharge strikes the right balance between 

  • Being high enough to have a material impact on house prices.
  • Help UK residents get onto and move up the housing ladder.
  • Keep the UK an open and dynamic economy that welcomes inward investment.

Draft legislation was published alongside the consultation response.


Non-resident CGT: UK residential property
Capital gains tax, non-residents and UK property.

Non-residents’ tax toolkit
This toolkit covers the key UK tax issues for non-UK resident individuals holding UK assets and property and working in the UK.

External links

Non-UK Resident Stamp Duty Land Tax Surcharge: Summary of Responses

Stamp Duty Land Tax: non-UK resident surcharge consultation

Draft legislation