Last updated: 16 October 2026
How much Stamp Duty do you pay on a second home?
If you already own a home and buy another residential property in England or Northern Ireland, you normally pay the higher rates of Stamp Duty Land Tax (SDLT). These are the standard rates plus a 5% surcharge on the whole price. The surcharge rose from 3% to 5% for purchases completing on or after 31 October 2024.
SDLT rates on additional properties in 2026/27
| Portion of the price | Standard rate | Second home or buy-to-let rate |
| 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% |
| Above £1.5 million | 12% | 17% |
Buyers who are not UK resident pay a further 2% on top. Properties costing less than £40,000 are outside the surcharge.
Worked example
Sam owns his home and buys a £300,000 holiday cottage in Cornwall.
- Standard SDLT: 0% on £125,000, 2% on £125,000 (£2,500) and 5% on £50,000 (£2,500), so £5,000.
- Surcharge: 5% of £300,000 = £15,000.
- Total SDLT: £20,000.
The return must be filed and the tax paid within 14 days of completion, usually by your solicitor.
When does the second home surcharge apply?
The higher rates apply when, at the end of the day of purchase, you own more than one residential property worldwide (with a value of £40,000 or more) and you are not replacing your main residence. Property owned by your spouse or civil partner counts as yours, even if only one of you is buying.
Can you get the surcharge refunded?
Yes, if the new property becomes your main residence and you sell your previous main home within 36 months of the purchase. You can then claim back the surcharge. Claim within 12 months of selling the old home or within 12 months of the SDLT return filing date, whichever is later. Keep completion statements for both sales.
Scotland and Wales
Scotland has Land and Buildings Transaction Tax with an Additional Dwelling Supplement of 8%. Wales has Land Transaction Tax with its own higher residential rates. The rules on replacing a main home are similar but the time limits differ, so check before you exchange.
Buying through a company
Companies pay the higher rates on almost every residential purchase, even the first one. A flat 17% rate can apply to homes over £500,000 bought by companies unless a relief, such as for a property rental business, applies.
Common mistakes
- Assuming every inherited share is ignored (only a share of 50% or less inherited in the last three years is ignored; a larger share counts)
- Forgetting a spouse’s property
- Missing the refund deadline after selling the old home
- Treating a mixed-use purchase as residential when non-residential rates may apply
Frequently asked questions
Do first-time buyers pay the surcharge on a buy-to-let?
No surcharge applies if it is the only property you own, but first-time buyer relief does not apply unless you will live there.
Does a caravan or houseboat count as a property?
No, these are not dwellings for SDLT.
Is SDLT deductible from rental profits?
No, but it is added to the cost for capital gains tax when you sell.
Can I avoid the surcharge by buying in my child’s name?
Only if they genuinely own it. Gifts can have inheritance tax and capital gains tax consequences.
Related: current Stamp Duty rates, SDLT on transfers to a company and CGT on a first and second property.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with stamp duty and property purchases. 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 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.
