Example calculations using the 2% non-UK resident surcharge:
X purchases a freehold property for £450,000 in England on 10 May 2021. X is present in Wales from 22 March 2021 onwards. Although the surcharge only applies to property in England and Northern Ireland, days spent anywhere in the UK count for the purposes of the residence test.
As at the effective date of the transaction, X has not been present in the UK for 183 days and so the SDLT return must be prepared on the basis that the 2% surcharge applies. Given that X is continuing to be present in the UK after the effective date of the purchase, X will satisfy the requirement of being present in the UK for 183 continuous days a few months after completion, at which point X can apply for a refund of the 2% surcharge.
Multiple individual purchasers
F, G and H are individuals entering into a 250-year lease of a residential property on 8 August 2021. Between 9 August 2020 and 8 August 2021, F and G spent 200 days in the UK. H was present in the UK during the 10 days prior to 8 August 2021, and remains in the UK after that date.
Both F and G are UK resident at the effective date. H is not yet UK resident at the effective date but becomes UK resident during the period of 365 days after the effective date. Given that at the effective date of the transaction only F and G met the residence conditions, the transaction is treated as a non-UK resident transaction when submitting the SDLT return. Once H has met the residence test, a refund of the 2% surcharge may be claimed.
Individual and corporate purchasers
A, B (individuals) and Dco (a company) purchase a residential property in England on 1 June 2022. Dco is a UK incorporated company in which C is the sole shareholder and director. A and C have been present in the UK for the last year, but B has only been present in the UK since 25 April 2022.
As one of the purchasers is a company, the residence test for the individuals is backward only. The residence of A, B and C (as shareholder in DCo) is therefore based on where they resided in the 364 days before the effective date. Given that B has been resident in the UK for less than 2 months at the effective date, B does not meet the residence requirement and the whole transaction will be subject to the 2% surcharge.