A Gulf buyer pays two surcharges on top of ordinary stamp duty, 2 per cent for being non-resident and 5 per cent for owning a home elsewhere; stamp duty refunds of each exist, in narrow circumstances. The deadlines are strict, and the family that moves to London after buying, or sells the Dubai villa, rarely knows that £20,000 or £50,000 is waiting at HMRC. The surcharges themselves are covered in our guide on stamp duty for overseas buyers.
Tax
Stamp duty refunds: the non-resident refund after 183 days, the additional-dwelling refund after a sale, and how to claim
Stamp duty refunds for overseas buyers: the two surcharges that can be reclaimed
The 2 per cent non-resident surcharge is refunded if the buyer spends 183 days in the UK in a continuous 365-day period ending within a year of completion; claim by amending the return within two years. The 5 per cent additional-dwelling rate is refunded only if the London property becomes the main residence and the previous main home is sold within three years; claim within twelve months of that sale. The ordinary rates are never refunded, and a buyer who stays in the Gulf gets nothing back.
The two surcharges, their refund conditions and their deadlines:
The two refundable stamp duty surcharges, their conditions and claim deadlines
| Surcharge | Rate | Refund condition | Window | Claim deadline |
|---|---|---|---|---|
| Non-resident surcharge | 2 per cent of the whole price | The buyer (every buyer, if joint) is present in the UK for at least 183 days in any continuous 365-day period | The 365-day period must fall within the two years from 364 days before completion to 365 days after it | Amend the return within two years of completion |
| Additional-dwelling rate | 5 per cent of the whole price | The buyer sells or gives away a previous main residence within three years of completion, and the new property is the buyer’s main residence | Three years from completion | Within twelve months of the sale of the previous home, or of the filing date of the return, whichever is later |
Source: GOV.UK guidance on the non-UK resident surcharge and the higher rates for additional properties, checked 14 October 2026.
Both refunds are of the surcharge only; the ordinary rates are never refunded.
How to get the 2 per cent non-resident surcharge refunded
The surcharge is charged on a buyer who was not present in the UK for 183 days in the twelve months before completion. It is refunded if, after completion, the buyer is present for 183 days in any continuous 365-day period that falls within the window from 364 days before completion to 365 days after it; days before completion count as well as days after.
Who qualifies for the 2 per cent refund in practice
A family that completes on 1 September and moves to London for the school year, spending 183 days in the UK by the following March, qualifies; a family that spends the summers only does not; a buyer who moves to London for work eight months after completion will usually fall short, because the 365-day period must end within a year of completion.
How UK presence is counted, and the rules for joint buyers
Presence means being in the UK at the end of the day, anywhere in the UK. For joint buyers every buyer must satisfy the test, each in their own 365-day period, and if any does not there is no refund; spouses buying together are treated as resident if either is.
How to get the 5 per cent additional-dwelling rate refunded
The additional-dwelling rate is charged because the buyer owns another home anywhere in the world at completion. It is refunded only where the new property is the buyer’s main residence and the buyer sells or gives away the previous main residence within three years of completion, so that the purchase was, in substance, a replacement of the main home.
What the 5 per cent refund means for a Gulf family
For a Gulf buyer that means: the family moves to London, makes the new house its main home, and sells the Riyadh or Dubai house within three years. A family that keeps the Gulf house and uses London for summers has not replaced a main residence and the 5 per cent is permanent; a family that sells a second home in Dubai but keeps the main one does not qualify either. Where the previous main home is sold before the London purchase completes, the rate is not charged at all.
Stamp duty refund deadlines for the 2 and 5 per cent
The 2 per cent: amend the return within two years of completion, once the 183 days are met; the amendment is the claim. The 5 per cent: claim within twelve months of the sale of the previous home or twelve months of the filing date of the return for the new home, whichever is later; a sale in year three therefore gives until year four. Miss either deadline and the refund is lost; HMRC has no discretion to extend except in narrowly defined exceptional circumstances for the 5 per cent (a sale prevented by government action, for instance), which the Gulf buyer’s own choice to stay in Dubai is not.
Evidence needed to claim the 2 per cent refund
For the 2 per cent: a day count of UK presence with supporting evidence, which in practice means passport stamps or Electronic Travel Authorisation records, flight tickets, and, for a family in a London home, school registers, utility use and bank transactions; HMRC can ask for all of it.
Evidence needed to claim the 5 per cent refund
For the 5 per cent: the completion statement for the sale of the previous home, and evidence that the London property is the main residence (council tax in the buyer’s name as main residence, the family’s presence, the children’s school). The firm’s advice is to keep a diary of UK days from the day of completion; a family that intends to qualify for the 2 per cent should count, not assume.
How to claim a stamp duty refund from HMRC
The buyer’s solicitor, or the buyer, amends the original stamp duty return online to remove the surcharge and applies for repayment, giving the transaction reference, the amount, the bank details and the evidence; for the 5 per cent a separate online repayment form exists. HMRC pays within weeks when the claim is complete and asks questions when it is not. A claim can be made by the buyer directly, but a solicitor’s or adviser’s letter with the evidence attached is faster. Interest is paid on the refund from the date of payment.
Which stamp duty payments cannot be refunded
The ordinary rates, ever. The 2 per cent, for a buyer who stays in the Gulf. The 5 per cent, for a buyer who keeps the Gulf home or who buys an investment flat rather than a main residence. Multiple dwellings relief, which was abolished on 1 June 2024 and cannot be claimed on any transaction since.
The 17 per cent company rate, except where a relief applied from the start and was not claimed, in which case the return can be amended within twelve months. And stamp duty on a purchase that goes wrong after completion; the tax is on the transaction, not the outcome.
Can a UK-resident relative buy to avoid the 2 per cent?
Buyers also ask whether the 2 per cent can be avoided by having a UK-resident relative buy; it can, if the relative is genuinely the buyer and the money is a documented gift, with the consequences our guide on gifting property to children sets out.
Worked examples of stamp duty refunds on a £1,500,000 purchase
Four cases on a £1,500,000 purchase, with what was paid and what comes back:
Refunds on a £1,500,000 purchase, worked through
| Case | Paid at completion on £1,500,000 | Refund |
|---|---|---|
| Family completes 1 September 2026, moves in for the school year, 190 UK days by 1 April 2027, keeps the Dubai villa | Ordinary £93,750 + 5 per cent £75,000 + 2 per cent £30,000 = £198,750 | £30,000 (the 2 per cent), claimed by amendment before 1 September 2028 |
| Same family, sells the Dubai villa in 2028 and London is the main home | as above | £30,000 + £75,000 = £105,000, the 5 per cent claimed within twelve months of the Dubai sale |
| Investor completes, never spends 183 days in the UK, keeps the Riyadh home | as above | nothing |
| Father and daughter buy jointly; daughter is UK resident at university, father in Riyadh | surcharges charged on the whole price because one buyer is non-resident | 2 per cent refundable only if the father also meets 183 days; in practice nothing |
Source: GOV.UK Stamp Duty Land Tax guidance; firm’s calculation, October 2026.
Sources: Stamp Duty Land Tax: non-UK residents, refunds (GOV.UK) · Higher rates for additional properties: refunds (GOV.UK) · Apply for a repayment of the higher rates for additional properties (GOV.UK) · Apply for a repayment of the non-UK resident surcharge (GOV.UK) · Stamp Duty Land Tax: corporate bodies (GOV.UK). Checked against GOV.UK on 14 October 2026: the non-resident surcharge refund rules and two-year amendment window, the higher rates for additional dwellings refund rules and the twelve-month claim limit. General information, not tax advice; a UK tax adviser or the solicitor who filed the return should make the claim. Figures verified 14 October 2026.
Frequently Asked
Questions about stamp duty refunds
If you were present for 183 days in a 365-day period that ends within a year of completion, yes; ten months is usually enough if the stay began near completion. Count the days and amend the return before the two-year deadline.
Only if London is your main residence and the Jeddah house was your previous main residence; if both are true, claim within twelve months of the Jeddah sale.
Yes, if both conditions are met; they are separate claims on the same return and the firm has seen a family recover seven per cent of a £2,000,000 purchase.
Yes. The 365-day period in which you must reach 183 days can fall anywhere within the window from 364 days before completion to 365 days after it, so days before completion count as well as days after. The period must still end within a year of completion, which is why a buyer who moves to London eight months after completing will usually fall short.
Presence means being in the UK at the end of the day, anywhere in the UK. HMRC can ask for the full day count with evidence: passport stamps or Electronic Travel Authorisation records, flight tickets and, for a family in a London home, school registers, utility use and bank transactions. The firm’s advice is to keep a diary of UK days from the day of completion and to count rather than assume.
Usually not. Every joint buyer must satisfy the 183-day test, each in their own 365-day period, and if any buyer does not there is no refund. A father in Riyadh buying with a daughter at a UK university pays the surcharge on the whole price and in practice recovers nothing. Spouses buying together are the exception: they are treated as resident if either is.
No. The additional-dwelling rate is refunded only where the London property is your main residence and you sell or give away your previous main residence within three years of completion. Selling a second home while keeping the main one does not qualify, and a family that keeps the Gulf house and uses London for summers has not replaced a main residence, so the 5 per cent is permanent.
Claim within twelve months of the sale of the previous home or twelve months of the filing date of the return for the new home, whichever is later; a sale in year three therefore gives until year four. Miss it and the refund is lost. HMRC can extend only in narrowly defined exceptional circumstances, such as a sale prevented by government action, and a buyer’s own choice to stay in Dubai is not one of them.
Your solicitor, or you, amends the original stamp duty return online to remove the surcharge and applies for repayment, giving the transaction reference, the amount, bank details and the evidence; for the 5 per cent a separate online repayment form exists. HMRC pays within weeks when the claim is complete and asks questions when it is not. A solicitor’s or adviser’s letter with the evidence attached is faster, and interest is paid on the refund from the date of payment.
No. Multiple dwellings relief was abolished on 1 June 2024 and cannot be claimed on any transaction since. The only company-rate refund is where a relief from the 17 per cent rate applied from the start and was not claimed, in which case the return can be amended within twelve months.
