How Is Stamp Duty Calculated in England? A Guide for Overseas Buyers, With Examples (2026)

When you buy a home in England, the biggest cost on top of the price is usually Stamp Duty Land Tax (SDLT). For overseas buyers it can be considerably higher than for someone living in the UK. This article explains the rates, when the surcharges apply, and walks through worked examples.

This applies to England and Northern Ireland. Wales has Land Transaction Tax and Scotland Land and Buildings Transaction Tax.

How Stamp Duty works

Stamp Duty is tiered: each rate applies only to the part of the price within that band. On a £300,000 home, the 5% rate applies not to the whole price but only to the £50,000 above £250,000.

The standard residential rates published on GOV.UK:

Price band	Standard rate
Up to £125,000	0%
£125,001 – £250,000	2%
£250,001 – £925,000	5%
£925,001 – £1,500,000	10%
Above £1,500,000	12%

Two surcharges that often apply to overseas buyers

1. Additional dwellings: +5%

If you will own more than one home after the purchase, 5 points are added to the rate in every band. The key point: homes anywhere in the world count. If you live in a home you own abroad, a home you buy in England will usually be an “additional dwelling”. Married couples are treated as one unit under this rule.

If you are selling your main home and replacing it, the surcharge may not apply or may be refunded later. Always check the conditions with your solicitor.

2. Non-UK resident: +2%

If you were not present in the UK for at least 183 days in the 12 months before the purchase, you are non-resident for Stamp Duty and a further 2 points are added to every band — even if you will live in the home yourself. Where several people buy together and any one of them is non-resident, the surcharge generally applies to the whole purchase (there are some exceptions for spouses).

If you move to the UK after buying and meet the 183-day test within a set period, you may be able to claim back the 2% element.

Worked examples

The examples below show how the same home produces very different tax bills for different buyers.

Example 1: £300,000 flat, UK-resident buyer with no other home

• First £125,000 × 0% = £0
• Next £125,000 × 2% = £2,500
• Remaining £50,000 × 5% = £2,500

Total: £5,000

Example 2: the same flat, non-resident buyer with no other home

Standard tax £5,000 + non-resident surcharge (£300,000 × 2%) £6,000 = £11,000

Example 3: the same flat, non-resident buyer who owns a home abroad

Standard tax £5,000 + additional-dwellings surcharge (£300,000 × 5%) £15,000 + non-resident surcharge £6,000 = £26,000

Example 4: £650,000 house, non-resident buyer who owns a home abroad

• Standard tax: £0 + £2,500 + (£400,000 × 5%) £20,000 = £22,500
• Additional-dwellings surcharge: £650,000 × 5% = £32,500
• Non-resident surcharge: £650,000 × 2% = £13,000

Total: £68,000

The same home can mean more than five times the tax depending on the buyer’s situation, so plan your budget with Stamp Duty included from the start.

First-time buyer relief

Buyers who have never owned a home anywhere in the world can claim first-time buyer relief: 0% up to £300,000 and 5% from £300,001 to £500,000. If the price is above £500,000, the relief does not apply and standard rates are used. If you are non-resident, the 2% surcharge is still added on top.

Example: a UK-resident first-time buyer purchases a £400,000 flat: £100,000 × 5% = £5,000. If the same buyer is non-resident, £8,000 is added, making £13,000.

Paying and filing

The Stamp Duty return and payment are due within 14 days of completion. Your solicitor usually files it for you and collects the amount before completion. See our process page for the full journey and our guide to buying a home in England for the bigger picture.

In short

Stamp Duty is the cost that most affects the total price of buying in England, and the surcharges can push it up quickly for overseas buyers. Calculating it for your own situation before choosing a home avoids surprises. In a free consultation we can work out the full cost sheet for you.

This article is general information, not personal tax advice. Rates can change; confirm the current rates with your solicitor before buying. Source: GOV.UK.