Last updated: 14 October 2026
Are you liable for the SDLT surcharge on a second home?
Probably, if you’ll own more than one residential property worth £40,000 or more at the end of the day of purchase and you’re not replacing your main residence. The surcharge, originally 3%, has been 5% on top of standard SDLT rates in England and Northern Ireland since 31 October 2024. It applies to second homes, buy-to-lets and most purchases by companies. If you’re buying a new main home and selling your old one, you can avoid it, or reclaim it if you sell the old home within 3 years.
When the surcharge applies
| Situation | Surcharge? |
| Buying a second home while keeping your main home | Yes |
| Buying a buy-to-let while owning your home | Yes |
| Buying a new main home and selling the old one on the same day | No |
| Buying a new main home before selling the old one | Yes, but refundable if old home sold within 3 years |
| First property, owning nothing else anywhere in the world | No |
| Buying through a company | Yes, from the first property |
| Owning a share of an inherited property for under 3 years | Ignored |
| Spouse owns another property | Yes, spouses are treated as one unit |
2026/27 residential rates with the surcharge
| Price band | Standard rate | With 5% surcharge |
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Over £1.5 million | 12% | 17% |
Example
Rachel owns her home in Bristol and buys a holiday cottage in Cornwall for £300,000. Standard SDLT is £5,000. The 5% surcharge adds £15,000, so she pays £20,000. If instead she bought a new main home for £300,000 and sold her old one within 3 years, she could claim back the £15,000 surcharge.
Overseas property counts
Property owned anywhere in the world counts towards the test. If you own a flat abroad worth over £40,000 and buy your first UK home, the surcharge applies, unless the UK home replaces it as your main residence.
Married couples
Spouses and civil partners living together are treated as one. If your spouse owns a property, you’re treated as owning it too, even if you’re buying alone.
Claiming a refund
Apply to HMRC within 12 months of selling your old main home, or within 12 months of the filing date of the SDLT return if later. The sale must be within 3 years of buying the new home.
Scotland and Wales
Scotland’s Additional Dwelling Supplement is 8% and Wales’s higher rates are higher too, with different refund rules.
Common mistakes
- Forgetting overseas property in the test
- Missing the refund deadline
- Assuming a spouse’s property doesn’t count
- Not claiming the surcharge back when you sell the old home
Frequently asked questions
Does a £40,000 caravan count?
Caravans and houseboats aren’t dwellings for SDLT.
Is the surcharge due on a garage?
No, only on dwellings.
Does it apply to shared ownership?
Yes, if you own another home.
Can I avoid it by buying in my child’s name?
Only if the child genuinely owns it.
Related: uninhabitable properties and SDLT, buying in your own name or a company and buying a flat in instalments.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with SDLT on additional properties. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
