UK: what changed for foreign buyers in 2026

Foreign buyers in England ask the same question: what will it cost, and what is changing. This briefing lists the rules and changes that matter for an agent advising an overseas buyer, as far as we could confirm. It separates what is in force from what has only been announced. It is written for agencies and developers, and it concentrates on England.

Stamp Duty Land Tax: the basic rates

The government's residential rates page lists these standard rates for a buyer who owns only one home after the purchase: nothing up to GBP 125,000, two percent on the part from 125,001 to 250,000, five percent from 250,001 to 925,000, ten percent from 925,001 to 1.5 million, and twelve percent above that (see the rates page). The page lists lower thresholds for first-time buyers, who are unlikely to be your overseas clients. The page does not give an effective date, so check the current tables before you quote anyone.

The two surcharges that hit overseas buyers

• Additional dwellings. A buyer who will own more than one residential property after the purchase pays five percentage points on top of the standard rates. The page says "usually" five percent, and sector sources record that it rose from three to five percent on 31 October 2024. Ask about homes owned anywhere in the world, not only in England.
• Non-residents. A further two percentage points apply to a buyer who is not UK resident for this purpose. The page defines non-resident as present in the UK for fewer than 183 days in the previous 12 months. One adviser describes a test over a longer period, so do not decide a buyer's status yourself: ask their tax adviser.

The two add up. For a non-resident who owns another home, the surcharges are seven points on every band, and by our arithmetic the top band reaches nineteen percent (twelve plus five plus two). Sector sources quote the same figure. Show the surcharge to the buyer when the offer is made, because it changes the real price by thousands of pounds.

The register of overseas entities

The Register of Overseas Entities has applied since 1 August 2022. An overseas company that owns, buys, sells or transfers UK property must register at Companies House with its registrable beneficial owners or managing officers. Summaries say a UK-regulated agent must verify the owners, that the registration charge is GBP 100, and that an update statement is due every year, within 14 days of the statement date, whether or not anything changed. An entity that is not registered cannot register title or sell, lease or mortgage. Agents who work with company buyers should treat this as a standing condition of the deal.

Announced changes in the Autumn Budget 2025

A law-firm summary of the Autumn Budget lists these items, with the status it gives them (see Wedlake Bell):

• a high-value council tax surcharge on homes worth more than GBP 2 million in England from April 2028, announced and not yet enacted
• a two-point rise in tax rates on property income from April 2027, to 22, 42 and 47 percent, announced with enactment pending
• technical changes to the non-resident capital gains rules for protected cell companies from 26 November 2025
• from 6 April 2026, a look-through for inheritance tax purposes of agricultural property held through non-UK companies

Because the status of several items was pending when we checked, do not present any of them to a buyer as settled. Tell buyers that the position depends on legislation and refer them to a tax adviser. The same summary notes that the non-domicile regime was replaced from 6 April 2025 by a regime that gives people arriving after at least ten years of non-UK residence four years of relief on foreign income and gains. That matters to buyers who plan to move to the United Kingdom.

Duties of the agent

Estate agents remain under the Money Laundering Regulations 2017, supervised by HMRC. On sanctions, OFSI's April 2025 property assessment says firms have underreported suspected breaches, and from 14 May 2025 letting agents must report to OFSI when they know or reasonably suspect that a person is a designated person. We could not confirm whether the same duty applies to sales-only agencies. Ask your compliance adviser, and treat the OFSI assessment as a statement of what the authority expects to see in your policies.

What this means for your team

• keep the rate tables you quote dated, and label every figure as general information
• ask about residence status and about other homes at the first call
• raise the non-resident and additional dwelling surcharges at the offer stage
• tell company buyers about the register of overseas entities before they bid
• do not describe announced tax changes as law
• keep your sanctions and money laundering policies current and write down the date of the last review

Working with D.H. Realting

D.H. Realting is a trilingual (Russian, English, Polish) overseas-property platform. We introduce buyers, including expats and cross-border buyers, and support the process. Agencies that handle the deal locally and want to be introduced to such buyers can contact us through our partners page.

This briefing is informational only and is not legal, tax or investment advice. Facts were checked on 12 October 2026 from the sources named in the text; rules change, so confirm with a local lawyer before relying on any point.