About this tool
This calculator handles the specialised scenarios that the standard SDLT calculator does not cover well: non-resident buyers, second homes, buy-to-let, mixed-use, and corporate purchases. It reflects two big 2024-2025 rule changes most calculators have not absorbed: the HRAD surcharge jumped from 3% to 5% on 31 October 2024, and on 1 April 2025 the temporary £250,000 nil-rate band reverted to the permanent £125,000 threshold.
SDLT applies only in England and Northern Ireland. Scotland uses LBTT (with the Additional Dwelling Supplement raised to 6% in December 2024) and Wales uses LTT. Both have their own bands and surcharges - see the related-tools section.
How it works
The tool slices the price into bands, multiplies each slice by its rate, and stacks the surcharges. A non-resident buying a second home pays Standard + 5% + 2% = +7% additional on every pound of price. The premium 7-point duty above £3m applies to all residential purchases regardless of buyer status.
Worked examples
Six common scenarios to anchor expectations. All assume completion after 1 April 2025 with the post-October 2024 5% HRAD rate.
Example 1 - UK resident, first home, £400,000
| Band | Rate | Slice | SDLT |
|---|---|---|---|
| £0-£300,000 (FTB nil) | 0% | £300,000 | £0 |
| £300,001-£400,000 | 5% | £100,000 | £5,000 |
| Total | 1.25% | £400,000 | £5,000 |
Example 2 - UK resident, second home / BTL, £400,000
| Band | Rate | Slice | SDLT |
|---|---|---|---|
| £0-£125,000 | 0% | £125,000 | £0 |
| £125,001-£250,000 | 2% | £125,000 | £2,500 |
| £250,001-£400,000 | 5% | £150,000 | £7,500 |
| HRAD surcharge | +5% | £400,000 | £20,000 |
| Total | 7.5% | £400,000 | £30,000 |
Example 3 - Non-resident, only home, £400,000
| Band | Rate | Slice | SDLT |
|---|---|---|---|
| £0-£125,000 | 0% | £125,000 | £0 |
| £125,001-£250,000 | 2% | £125,000 | £2,500 |
| £250,001-£400,000 | 5% | £150,000 | £7,500 |
| Non-resident surcharge | +2% | £400,000 | £8,000 |
| Total | 4.5% | £400,000 | £18,000 |
Example 4 - Non-resident, second home / BTL, £400,000 (the stacking case)
| Band | Rate | Slice | SDLT |
|---|---|---|---|
| £0-£125,000 | 0% | £125,000 | £0 |
| £125,001-£250,000 | 2% | £125,000 | £2,500 |
| £250,001-£400,000 | 5% | £150,000 | £7,500 |
| HRAD surcharge (+5%) | +5% | £400,000 | £20,000 |
| Non-resident surcharge (+2%) | +2% | £400,000 | £8,000 |
| Total | 9.5% | £400,000 | £38,000 |
The two surcharges stack: 5% + 2% = 7 percentage points extra across the full price, on top of standard tiered SDLT.
Example 5 - £3.5m luxury residential (premium duty kicks in)
| Band | Rate | Slice | SDLT |
|---|---|---|---|
| £0-£125,000 | 0% | £125,000 | £0 |
| £125,001-£250,000 | 2% | £125,000 | £2,500 |
| £250,001-£925,000 | 5% | £675,000 | £33,750 |
| £925,001-£1,500,000 | 10% | £575,000 | £57,500 |
| £1,500,001-£3,500,000 | 12% | £2,000,000 | £240,000 |
| Total (UK resident, single home) | ~9.54% | £3,500,000 | £333,750 |
Example 6 - Company buying £600,000 residential (ATED applies)
A UK company purchasing a £600,000 residential dwelling above the £500,000 threshold typically pays a flat 17% rate (£102,000), unless a relief applies (e.g. genuine commercial letting, property development trade, employee accommodation). ATED also imposes an annual charge of £4,400 (£500k-£1m band, 2025-26). If the relief is claimed, the standard SDLT + 5% HRAD applies instead (£40,000 in this example).
The HRAD increase: 3% to 5% on 31 October 2024
At Autumn Statement 2024, the Chancellor announced that the Higher Rates Additional Dwelling surcharge would rise from 3% to 5% effective for contracts exchanged on or after 31 October 2024. This was a 67% jump in the surcharge - the biggest single change to the SDLT regime since HRAD was introduced in April 2016.
The practical effect for a typical £400,000 BTL purchase: HRAD went from £12,000 to £20,000 overnight - a £8,000 increase. For a £1m London BTL, the surcharge went from £30,000 to £50,000.
Importantly, the policy targets second homes and investors, NOT first-time buyers. If you are buying a property to live in as your only home, you do not pay HRAD - even though you may pay the 2% non-resident surcharge if you have been abroad for most of the prior 12 months.
How the 2% non-resident surcharge works (since April 2021)
The non-resident surcharge was introduced in Finance Act 2021 to cool foreign investment in UK residential property. It adds 2 percentage points to every band of standard SDLT (so a £400k purchase gains an extra 2% × £400k = £8,000), and stacks with HRAD if the property is also a second home.
The residency test is simple but unforgiving: you must be present in the UK for at least 183 days in the 365 days immediately before completion (or in some cases the effective date, if different). Day counting follows the day-of-arrival / day-of-departure rules from the Statutory Residence Test, but the SDLT test is separate.
Stacking: how the surcharges combine
The two surcharges are independent and additive. They are applied to the FULL purchase price (not to the SDLT amount).
| Scenario | HRAD | Non-resident | Combined surcharge |
|---|---|---|---|
| UK resident, first home | 0% | 0% | +0% |
| UK resident, second home / BTL | 5% | 0% | +5% |
| Non-resident, only home | 0% | 2% | +2% |
| Non-resident, second home / BTL | 5% | 2% | +7% |
| Company / corporate (no relief, >£500k) | flat 17% | included | 17% on whole price |
Refund routes you should know about
- Form SDLT-LOR (replacement main residence refund): if the second home replaces your previous main home and you sell that previous home within 36 months of completion, you can reclaim the full 5% HRAD. Claim within 12 months of the sale or within 12 months of the SDLT filing deadline, whichever is later.
- Non-resident surcharge refund: spend 183 days in the UK in any 365-day continuous period spanning up to 364 days before completion to 365 days after. File via SDLT5 amendment within 2 years.
- ATED-related SDLT relief: if the company qualifies for an ATED relief (commercial letting, employee accommodation, property development trade) the 17% flat rate does not apply and standard SDLT + 5% HRAD is used instead.
- Multiple Dwellings Relief (MDR) - REPEALED: MDR was abolished for completions on or after 1 June 2024. Calculators that still apply MDR overstate refund eligibility.
Common pitfalls
- "I'll be back before completion." Day-counting for the non-resident test looks BACKWARDS from completion, not forwards. If you have been abroad for 8 months, you cannot fix that in the final 4 months - you needed 183 days in the prior 12 months.
- "My wife is UK resident, so we don't pay the surcharge." Both spouses are treated as one buyer. If EITHER is non-resident, the surcharge applies to the whole transaction.
- "It's only 17% if I exceed £500k." The 17% flat rate is on the FULL purchase price the moment you exceed £500k - not just on the slice above. A £510k corporate purchase pays £86,700, not £1,700.
- "I can deduct chattels to reduce the bill." Fixtures (carpets, light fittings) cannot be deducted. Removable chattels (free-standing furniture, white goods) can but must be apportioned at genuine market value - HMRC scrutinises aggressive apportionment.
- "Old 3% HRAD applies because I signed contracts in October 2024." The 5% rate applies if contracts were exchanged on or after 31 October 2024. Transitional rules protect contracts exchanged before that date but completed after, even if completion is much later.
The formula explained
For a residential purchase by a non-resident second-home buyer:
SDLT = (Standard tiered SDLT on price) + (5% × full price) + (2% × full price)
= Standard SDLT + 7% × full price
For a corporate buyer above £500,000 without ATED relief:
SDLT = 17% × full price (replaces both standard SDLT and HRAD)
The bands themselves come from Finance Act 2003 as amended through Finance Act 2024 and the Autumn Statement 2024 announcement. The HRAD increase to 5% is published in Schedule 4ZA of FA2003 (as substituted by FA2024). The non-resident surcharge is in Schedule 9A of FA2003 (inserted by FA2021).
Frequently asked questions
Who counts as a non-resident for SDLT purposes?
You are non-resident for the 2% SDLT surcharge if you have spent fewer than 183 days in the UK in the 12 months immediately before the effective date of the transaction (usually completion). Both individual buyers and most companies controlled by non-residents fall in scope. The test is separate from the Statutory Residence Test used for income tax.
Can I reclaim the 2% non-resident surcharge if I become UK resident within 12 months?
Yes. If you are present in the UK for at least 183 days during any continuous 365-day period that starts up to 364 days before and ends up to 365 days after the transaction, you can claim a refund. File the claim using form SDLT5 amendment within 2 years of the effective date.
Does HRAD apply to limited companies and corporate buyers?
Yes. Companies buying residential property pay the 5% HRAD surcharge on any purchase from the first pound, in addition to standard rates. For purchases above £500,000, a 17% flat rate may apply under the Annual Tax on Enveloped Dwellings (ATED) regime unless a relief like commercial letting is claimed.
What counts as a 'replacement' main home for the HRAD refund?
If the new home replaces your only or main residence and you sell the previous main home within 36 months of the new purchase, you can reclaim the 5% HRAD surcharge. The previous home must have been your main residence at some point in the 3 years before the new purchase. File form SDLT-LOR with HMRC.
How are mixed-use properties taxed?
Mixed-use (part residential, part commercial - e.g. shop with flat above) is taxed at non-residential SDLT rates: 0% to £150,000, 2% £150,001-£250,000, 5% above £250,000. The 5% HRAD and 2% non-resident surcharges do NOT apply to mixed-use or pure non-residential purchases.
Does leasehold or freehold matter for SDLT?
SDLT applies to both. For freehold you pay on the purchase price. For leasehold you pay on the lease premium plus, separately, on the Net Present Value of rent over the lease term (1% above £125,000 NPV residential). Buying an existing leasehold is treated almost identically to a freehold purchase.
What is ATED and when does it bite?
Annual Tax on Enveloped Dwellings is a yearly charge on residential properties owned by companies, partnerships with corporate members, or collective investment schemes when the property is worth more than £500,000. 2025-26 charges range from £4,400 (£500k-£1m band) to £292,350 (over £20m). Reliefs apply for genuine commercial letting and developers.
Do these rules apply in Scotland and Wales?
No. Scotland uses Land and Buildings Transaction Tax (LBTT) with a 6% Additional Dwelling Supplement (ADS, raised from 4% in December 2024) and no non-resident surcharge. Wales uses Land Transaction Tax (LTT) with a higher-rates band starting at 5% and no non-resident surcharge. SDLT applies only to England and Northern Ireland.
If I buy with my partner and only one of us is non-resident, do we still pay 2%?
Yes. For SDLT non-resident surcharge purposes, joint buyers are treated as one purchaser. If any one of them fails the 183-day test, the 2% surcharge applies to the whole transaction.
What if I'm an EU citizen with settled status - am I a UK resident?
Settled status alone does not determine SDLT residency. The 183-days-in-UK test is purely based on physical presence in the 12 months prior to completion, regardless of citizenship or immigration status.
Is the HRAD waived for properties below £40,000?
Yes. HRAD does not apply if the chargeable consideration is under £40,000. Below that threshold no SDLT return is even required.
Can I avoid HRAD by buying through a trust?
Generally no. Bare trusts and most discretionary trusts are looked through to the beneficiaries. Companies are caught by both HRAD and (above £500k) ATED. Aggressive trust structuring is well within HMRC's anti-avoidance reach.
What's the deadline for paying SDLT after completion?
14 days from the effective date (usually completion). Late filing and late payment penalties apply. Most solicitors handle this automatically as part of conveyancing.
If completion is delayed past 36 months for my old-home sale, can I still reclaim HRAD?
Generally no - the 36-month rule is statutory. There are very narrow extensions for exceptional circumstances (e.g. fire, flood) at HMRC's discretion. Plan around the deadline; do not hope for an extension.
Does the 2% non-resident surcharge apply to commercial property?
No. The 2% non-resident surcharge applies only to residential property. Pure commercial and mixed-use purchases use non-residential rates and are not subject to either HRAD or the non-resident surcharge.
Are the rates different for Wales and Scotland?
Yes. Scotland has its own Land and Buildings Transaction Tax with a 6% ADS (from December 2024, up from 4%) and no non-resident surcharge. Wales has Land Transaction Tax with its own bands and a 5% higher rates supplement. Both have completely different thresholds. Use a dedicated LBTT or LTT calculator for those nations.