Property
⏱ 3 min read
📅 Updated Apr 2026
How Much Is Stamp Duty on a Second Home? UK 2026
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 questionsCan 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. |
Part of our complete guide: UK Mortgage Rates April 2026 - Current Rates & Guide → Find a whole-of-market mortgage broker →
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The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.
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Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.
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