Non-resident SDLT surcharge: CoACSs, RIFs and EEA equivalent funds
In brief
For the non-resident SDLT surcharge, a UK CoACS and a RIF are not non-resident. An EEA equivalent scheme treated as a CoACS is non-resident.
- Check the scheme’s legal status
- Do not rely on investor nationality
- Keep evidence of authorisation and structure
Scroll down for the full analysis.
Read the original guidance here:
Non-resident SDLT surcharge: CoACSs, RIFs and EEA equivalent funds
Non-resident SDLT surcharge: CoACSs, RIFs and EEA equivalent funds
If an investment fund buys property in England or Northern Ireland, its label can decide whether the non-resident stamp duty surcharge applies. A UK CoACS and a Reserved Investor Fund do not count as non-resident for this rule. An equivalent EEA scheme does.
What this rule is about
This rule concerns not someone buying a home in their own name, but a pooled investment fund in which several investors pool assets and a depositary holds them. The law calls this a co-ownership contractual scheme, or CoCS.
In simple terms, a fund pools assets for several investors. A depositary holds those assets, while the parties manage the fund under an agreement between them.
For most SDLT purposes, the law treats a CoCS like a company. The law treats investors’ rights like shares. That is not the end of the story for the non-resident surcharge.
One detail matters here: the scheme’s exact type.
What the official source says
HMRC’s manual says that a CoCS includes both a co-ownership authorised contractual scheme, known as a CoACS, and a Reserved Investor Fund, known as a RIF.
It then sets out the special treatment in paragraph 15 of Schedule 9A. That paragraph deals with whether these schemes count as non-resident for the SDLT surcharge.
- A CoACS does not count as non-resident.
- A RIF does not count as non-resident.
- An EEA collective investment scheme treated as a CoACS under section 102A does count as non-resident.
- The EEA scheme must qualify through the statutory route for treatment as a CoACS.
Funds that look commercially similar may nevertheless receive different answers under the law for this surcharge.
What this means in practice
Do not assume a fund is non-resident simply because some investors live abroad, or because the fund invests across borders. For this narrow rule, paragraph 15 gives a direct answer for a CoACS and a RIF.
Equally, do not assume its CoACS treatment solves the point. The statute treats an EEA equivalent scheme differently.
- Check the fund’s formal legal status, not its marketing description.
- Separate a UK CoACS from an EEA equivalent scheme.
- Check whether the fund is a RIF.
- Keep the documents that prove the fund’s status with the SDLT working papers.
- Do not decide the issue from the nationality of individual investors alone.
If your solicitor has said the non-resident surcharge applies, ask whether the property buyer is a UK CoACS, a RIF, or an EEA equivalent scheme before accepting that conclusion. Start there.
How to analyse it
Start with the scheme itself. Then work through its statutory category before looking at the SDLT result. A fund’s name may help, but it cannot settle the issue.
- Identify the legal entity or arrangement that is buying the property.
- Find the scheme constitution and the authorisation records.
- Ask whether it is a co-ownership contractual scheme under section 102A.
- If it is, ask whether it is a UK CoACS.
- Check separately whether it is a RIF.
- If neither answer applies, consider whether it is an EEA collective investment scheme treated as a CoACS.
- Apply paragraph 15 to that category.
- Only then work out the SDLT treatment of the purchase.
The order matters. Starting with where investors live can lead you down the wrong path.
Example
Imagine that Greenfield Property Fund is buying a warehouse in England. Its papers show that it is a UK CoACS. Under paragraph 15, it does not count as non-resident for this surcharge, even if some of its investors are based overseas.
Now change one fact. Suppose the fund is instead an EEA collective investment scheme that section 102A treats as a CoACS. HMRC’s manual says that scheme counts as non-resident for this purpose. The tax result may therefore be different.
Why this can be difficult in practice
Similar names in this area may describe arrangements with different legal effects, and the paperwork may use broad commercial language instead of the precise statutory term. Read the statutory label.
HMRC’s manual is useful because it states its view clearly. It is still guidance, though. Paragraph 15 and section 102A are the law that must be applied.
- A fund called a contractual scheme is not automatically a CoACS.
- A foreign connection does not automatically make a UK CoACS non-resident.
- An EEA equivalent scheme has a separate statutory treatment.
- A fund may have separate pools, which can need separate review.
- A change to the scheme’s structure may affect the analysis.
- The status at the relevant time must be supported by records.
Key takeaways
- A UK CoACS does not count as non-resident for this surcharge.
- A RIF does not count as non-resident for this surcharge.
- An EEA equivalent scheme treated as a CoACS does count as non-resident.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- FA 2003 Schedule 9A para 15 — non-residence treatment for co-ownership investment schemes
- FA 2003 section 102A — sdlt treatment of co-ownership contractual schemes; when an eea scheme counts as a coacs
Official guidance
The pages below are HMRC’s guidance. Guidance is not law. It sets out how HMRC reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. HMRC can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- The supplied material does not explain every condition for a scheme to be an EEA equivalent under section 102A.
- The answer can change if a scheme has been restructured, renamed or operates through separate pools.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- The scheme constitution and governing documents
- The scheme’s authorisation or regulatory status
- Details of the scheme operator and where it is incorporated
- Confirmation of whether the scheme is a CoACS, RIF or EEA equivalent scheme
- The date and details of the land purchase
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching UK Stamp Duty Land Tax (SDLT), which applies in England and Northern Ireland. MY QUESTION Non-resident SDLT surcharge: CoACSs, RIFs and EEA equivalent funds [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - FA 2003 Schedule 9A para 15 - non-residence treatment for co-ownership investment schemes https://www.legislation.gov.uk/ukpga/2003/14/schedule/9A/paragraph/15/2025-11-17 - FA 2003 section 102A - sdlt treatment of co-ownership contractual schemes https://www.legislation.gov.uk/ukpga/2003/14/section/102A/2025-11-17 - FA 2003 section 102A - when an eea scheme counts as a coacs https://www.legislation.gov.uk/ukpga/2003/14/section/102A/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09945 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from HMRC is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - The supplied material does not explain every condition for a scheme to be an EEA equivalent under section 102A. - The answer can change if a scheme has been restructured, renamed or operates through separate pools. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show Finance Act 2003 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 31 August 2026
Useful article? You may find it helpful to read the original guidance here: Non-resident SDLT surcharge: CoACSs, RIFs and EEA equivalent funds
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