Could owning a home abroad affect the SDLT payable on a UK property purchase?

In recent articles for Taxation and PrimeResi, Private Wealth Associate Will Timbrell examines how overseas property holdings can affect a buyer's exposure to the higher rates of Stamp Duty Land Tax (SDLT) when purchasing residential property in the UK.

Using examples such as Delaware LLCs and French SCIs, Will explains how UK legal and tax principles determine whether an individual is treated as holding a “major interest” in an overseas dwelling. He explores the distinction between entities that are regarded as “transparent” or “opaque” for UK tax purposes, the factors considered when classifying foreign entities, and why this analysis can be crucial in determining whether the additional 5% SDLT surcharge applies.

The articles provide valuable insight into an area where domestic tax rules and international ownership structures intersect. As cross-border property ownership becomes increasingly common among internationally mobile individuals and families, Will discusses the importance of looking beyond how a structure is treated in its home jurisdiction and considering that the UK tax treatment of overseas entities may differ significantly from their local treatment.

Will also emphasises the importance of understanding these issues before committing to a purchase, particularly where overseas structures are involved. He notes that the existence of overseas property does not automatically mean the higher rates of SDLT will apply, and that careful analysis of how those properties are held is required to determine the correct SDLT treatment.

The full articles were published by Taxation and PrimeResi (paywall) in July 2026.