What it costs to buy
In England, Stamp Duty Land Tax on a home is charged by slice: nothing up to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above £1.5 million. On top of that, a buyer usually pays 5% more on every band if the purchase means owning more than one home, and 2% more if they are not UK resident — a test based on presence in the UK for at least 183 days in the 12 months before buying (HMRC, SDLT residential rates). The surcharges stack, so for a non-resident buying a second home the slice above £1.5 million is taxed at 19% (our arithmetic from HMRC's rates).
Buying through a company changes the picture: SDLT is charged at 17% on residential property costing more than £500,000 bought by certain corporate bodies, with reliefs for genuine property-rental and development businesses (HMRC, SDLT for corporate bodies). An overseas company must also register with Companies House before it can buy, sell or transfer land in the UK, and give its Overseas Entity ID to the Land Registry (Companies House, Register an overseas entity).
What it costs to hold
A company-owned dwelling worth more than £500,000 pays the Annual Tax on Enveloped Dwellings every year unless a relief applies. For 2026-27 the charge runs from £4,600 (value £500,000 to £1 million) to £303,450 (over £20 million) (HMRC, ATED: the basics).
| Property value | ATED 2025-26 | ATED 2026-27 |
|---|---|---|
| £500,001 – £1m | £4,450 | £4,600 |
| £1m – £2m | £9,150 | £9,450 |
| £2m – £5m | £31,050 | £32,200 |
| £5m – £10m | £72,700 | £75,450 |
| £10m – £20m | £145,950 | £151,450 |
| Over £20m | £292,350 | £303,450 |
Individuals pay council tax to the borough instead; the structure that saves SDLT on the way in can cost more every year after it.
How a purchase works
The legal work of transferring ownership is done by a solicitor or licensed conveyancer on each side; the sale becomes binding at exchange of contracts and ownership passes at completion (GOV.UK, Buy or sell your home). Until exchange, either side can withdraw — which is why searches, the survey and the lease (for most flats) should be finished before you exchange, not after.
Selling, and non-resident tax
A non-resident who sells UK residential property must report it to HMRC and pay any tax due within 60 days of completion, even if there is no tax to pay (HMRC, CGT for non-residents).
Moving to London
Buying does not give a right to live in the UK. For those who do become resident, the old remittance basis for non-domiciled individuals ended on 6 April 2025 and was replaced by a four-year foreign income and gains regime, available in the first four years of UK tax residence after at least ten years of non-residence (HMRC, 4-year FIG regime).
The market
The Office for National Statistics' provisional estimate puts the average London house price at £569,000 in July 2026, down 3.3% on a year earlier, while the UK average rose 1.4% to £273,000 (ONS, September 2026). That average covers every kind of home in every borough; prime central London trades on its own terms, and there is no official index for it.
