Stamp Duty on a Second Home UK 2026 — How Much Will You Pay?

How Much Is Stamp Duty on a Second Home? UK 2026

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 7 Apr 2026

Last reviewed 7 Apr 2026

✓ Fact-checked

How much is stamp duty on a second home?

In England and Northern Ireland, buying a second home or buy-to-let property incurs Stamp Duty Land Tax (SDLT) at the standard residential rates plus a 5 percentage point surcharge on every band. This surcharge was increased from 3% to 5% in October 2024 and applies from the first pound of the purchase price.

The second home stamp duty surcharge in England is 5% on top of standard rates, applied from £0. It was increased from 3% to 5% in October 2024.

Second home stamp duty rates 2026

Purchase price portion	Standard rate	Second home rate (standard + 5%)
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%

Second home stamp duty calculator examples

Purchase price	Standard SDLT	Second home SDLT	Extra cost of surcharge
£200,000	£1,500	£10,000	£8,500
£300,000	£5,000	£20,000	£15,000
£400,000	£10,000	£30,000	£20,000
£500,000	£15,000	£40,000	£25,000
£750,000	£27,500	£65,000	£37,500

Who pays the second home surcharge?

Anyone buying an additional residential property while already owning one
Buy-to-let investors purchasing a rental property
Parents buying a property for a child to live in (if the parent already owns property)
Couples where one partner already owns a property (even if buying in sole name)

Are there exemptions to the second home surcharge?

Replacing your main residence — if you sell your main home on the same day you buy a new one, the surcharge does not apply. If you buy before selling, you pay the surcharge but can claim a refund within 12 months of selling your old home
Purchases under £40,000 — the surcharge does not apply to properties bought for less than £40,000
Mixed-use property — properties with commercial and residential elements may attract non-residential rates without the surcharge
Inherited property — an inherited share of a property under 50% is ignored when assessing whether you already own property

Scotland and Wales second home rules

Scotland (LBTT) — Additional Dwelling Supplement (ADS) of 6% on the full purchase price from April 2024
Wales (LTT) — Higher Residential Rates surcharge of 4% on top of standard LTT rates

Verdict

Budget carefully — the surcharge is substantial

On a £300,000 second home, the surcharge adds £15,000 to your stamp duty bill compared to buying as a main residence. Factor this into your financial modelling. If replacing your main residence, claim the refund within 12 months of selling.

Frequently asked questions

Can I avoid the second home stamp duty surcharge?

Legally you can avoid it by selling your current home before or on the same day as buying the new property, or by buying property in certain exempt categories. Attempts to avoid it artificially (e.g. gifting a share to a spouse) are scrutinised by HMRC.

Do I pay the surcharge if I inherit a property?

An inherited share under 50% of a property is disregarded when assessing whether you own additional property for surcharge purposes. If you inherit a 50% or greater share, you are treated as owning that property.

Can I claim a stamp duty refund if I sell my old home after buying?

Yes. If you paid the surcharge because you owned another property at the time of purchase and then sell that other property within 12 months, you can claim a full refund of the surcharge from HMRC. Apply via the HMRC SDLT online service.

Does the second home surcharge apply to buy-to-let?

Yes. Buy-to-let purchases are treated as additional dwellings and the 5% surcharge applies from the first pound.

Kael Tripton

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