TL;DR: A second residential property purchased in England or Northern Ireland normally attracts a 5 percent higher rate of Stamp Duty Land Tax (SDLT) on top of the standard residential rates, under the Higher Rates for Additional Dwellings (HRAD). The surcharge applies to buy-to-let purchases, second homes, and most company purchases of residential property. The buyer can reclaim the surcharge if their previous main residence is sold within 36 months of the new purchase and the new property becomes the buyer's main residence. Scotland (LBTT Additional Dwelling Supplement) and Wales (LTT Higher Residential Rates) operate similar but distinct surcharges with different thresholds and rates. The exact bill depends on the price, the country and the buyer's circumstances.
Last reviewed May 2026
Buying a second residential property in the UK triggers an additional Stamp Duty Land Tax charge in England and Northern Ireland, an Additional Dwelling Supplement on top of Land and Buildings Transaction Tax in Scotland, and a Higher Residential Rate on top of Land Transaction Tax in Wales. The three regimes have different rates and rules; the underlying logic is the same: buyers acquiring an additional residential property pay more tax than buyers replacing their only residential property.
This guide explains the second-property tax position in 2026 for each of the three UK regimes, the practical tests for "additional dwelling", how reclaims work where a previous main residence is sold later, the company purchase position, and how the rules apply in common edge cases such as inheritance, married couples and joint purchases.
England and Northern Ireland: SDLT higher rates
The Higher Rates for Additional Dwellings (HRAD) in England and Northern Ireland add 5 percentage points to each standard SDLT residential rate band where the purchase is of an "additional dwelling" by an individual, or where the purchase is by a company or trust holding residential property in most circumstances. The 5 percentage point surcharge was increased from 3 percent on 31 October 2024 and applies to transactions on or after that date.
Standard SDLT residential rates in England and Northern Ireland in 2026 are 0 percent up to 125,000 pounds, 2 percent from 125,001 to 250,000, 5 percent from 250,001 to 925,000, 10 percent from 925,001 to 1.5 million, and 12 percent above. With the 5 percent higher rate added, the additional dwelling rates become 5 percent, 7 percent, 10 percent, 15 percent and 17 percent across the same bands. The first-time buyer relief does not apply to additional dwelling purchases.
HMRC publishes an SDLT calculator that produces the figure for a specific purchase. The buyer's solicitor calculates the SDLT due, files the SDLT return with HMRC within 14 days of completion, and pays the SDLT on behalf of the buyer.
Scotland: LBTT Additional Dwelling Supplement
Scotland operates Land and Buildings Transaction Tax (LBTT) rather than SDLT, administered by Revenue Scotland. The Additional Dwelling Supplement (ADS) is added to the standard LBTT on the purchase of an additional residential property. The ADS rate has been adjusted by successive Scottish budgets; the current rate sits at 8 percent of the full purchase price, applied as a flat surcharge on top of the LBTT bands.
Standard LBTT residential rates in Scotland start at 0 percent up to 145,000 pounds (or 175,000 for first-time buyers), 2 percent from 145,001 to 250,000, 5 percent from 250,001 to 325,000, 10 percent from 325,001 to 750,000, and 12 percent above. The ADS surcharge of 8 percent of the full price is calculated separately and added to the LBTT.
The Scottish ADS rules align broadly with the England and Northern Ireland HRAD rules on what counts as an "additional dwelling" but the detail differs, and Revenue Scotland's guidance is the authoritative reference for Scottish purchases. The reclaim window in Scotland is 36 months from the new purchase, the same as in England.
Wales: LTT Higher Residential Rates
Wales operates Land Transaction Tax (LTT) rather than SDLT, administered by the Welsh Revenue Authority. The Higher Residential Rates apply where the purchase is of an additional residential property. The Welsh higher rates structure adds a surcharge of around 4 percentage points to each LTT band, with the precise rates set by the Welsh Government and updated in successive Welsh budgets.
Standard LTT residential rates in Wales start at 0 percent up to 225,000 pounds, 6 percent from 225,001 to 400,000, 7.5 percent from 400,001 to 750,000, 10 percent from 750,001 to 1.5 million and 12 percent above. The Higher Residential Rates apply at the equivalent higher percentages on each band where the additional dwelling test is met.
The Welsh Revenue Authority's website provides the current rates and a calculator. Welsh property purchases by non-resident buyers can be subject to additional considerations, and a Welsh solicitor handles the LTT filing and payment within 30 days of completion.
What counts as an "additional dwelling"
The additional dwelling test applies where, at the end of the day of the purchase, the buyer (or any joint buyer, or any associated person within the rules) owns a major interest in two or more residential properties and the new property is not replacing the buyer's only or main residence. The detailed rules cover spouses and civil partners (treated as a single buyer for the test in most circumstances), children under 18 (treated as part of the parental household), and non-UK property (included in the count of properties owned).
A married couple or civil partnership is treated as a single unit for the additional dwelling test, even if the new property is being purchased in only one of their names. A property owned by one spouse counts against the other on a new purchase by either of them. This rule catches a common pattern where one spouse owns a buy-to-let already and the other spouse tries to buy a "main residence" in their sole name.
An inherited share of a property counts as a beneficial interest from the date of inheritance, with limited exceptions. Holding under 50 percent of a property and a value of less than 40,000 pounds does not count as a dwelling for the test; this can help in some inherited-share cases.
Replacing the main residence and reclaiming the surcharge
If the buyer's new property will become the buyer's main residence and the previous main residence is sold within 36 months of the new purchase, the higher rates can be reclaimed. The reclaim is made through HMRC (for SDLT), Revenue Scotland (for LBTT ADS) or the Welsh Revenue Authority (for LTT), depending on where the new property is located. The reclaim must be filed within 12 months of the previous main residence sale or within 12 months of the SDLT return filing deadline, whichever is later.
The reclaim is the difference between the higher rate paid and the standard rate that would have applied if the buyer had not been treated as buying an additional dwelling. The funds are repaid by HMRC (or the Scottish or Welsh authority) to the bank account specified on the reclaim form. The reclaim is the buyer's responsibility; it is not automatic.
Where the previous main residence is not sold within 36 months, the higher rate stays paid and cannot be reclaimed. The 36 months runs from the completion date of the new purchase. Bridging arrangements (where the new property completes before the old one sells) can therefore incur a temporary SDLT cash flow burden that is recovered on the later sale.
Company purchases and the 15 percent rate
A company purchasing a residential property worth more than 500,000 pounds can be subject to the 15 percent flat rate of SDLT under the Annual Tax on Enveloped Dwellings (ATED) anti-avoidance rules. The 15 percent rate applies where the company is "non-natural", the property exceeds the 500,000 pound threshold, and no relief applies. Reliefs are available for property businesses (rental, development, dealing) that meet specific tests.
Companies buying residential property as part of a rental business normally claim the property rental relief, which means the 15 percent ATED-related rate does not apply. The standard higher rates (5 percentage points above the residential SDLT rates) apply instead, as the company is treated as purchasing an additional dwelling.
The ATED itself is a separate annual tax on companies owning residential property above 500,000 pounds, with reliefs for property businesses and other specific categories. ATED is administered by HMRC and is unrelated to SDLT, although the 15 percent SDLT rate is part of the ATED package of measures.
Common edge cases
Buying a new main residence before selling the old one triggers the higher rates on the new purchase (because, at completion, the buyer owns two properties). The reclaim on the later sale of the old property recovers the surcharge. The 36-month window provides a buffer where the sale is delayed.
Inheriting a share of a property part-way through a chain can complicate the picture. Where the inherited share is less than 50 percent and worth less than 40,000 pounds, it can be ignored for the additional dwelling test. Where the share is larger or higher value, it counts and triggers the higher rates on a subsequent property purchase by the inheritor.
A joint purchase with a friend, sibling or parent triggers the higher rates if any joint owner owns another residential property. The rule applies to each joint owner separately; one joint owner having another property is enough to trigger the higher rates on the whole transaction.
How we verified this
This article reflects HMRC guidance on Stamp Duty Land Tax including the Higher Rates for Additional Dwellings introduced in 2016 and uprated to 5 percent in October 2024, Revenue Scotland guidance on Land and Buildings Transaction Tax and the Additional Dwelling Supplement, the Welsh Revenue Authority guidance on Land Transaction Tax and the Higher Residential Rates, the Finance Act 2003 and Finance Act 2016 (as amended) for the underlying SDLT legislation, and the Annual Tax on Enveloped Dwellings rules for company-held residential property. SDLT, LBTT and LTT rates can change at successive budgets; the latest figures should be checked on the HMRC, Revenue Scotland and Welsh Revenue Authority calculators.
Disclaimer: This article is general information about UK second-property stamp duty regimes. It is not personal tax or legal advice. The application of the higher rates depends on individual circumstances, the country in which the property is located, and the structure of ownership. Anyone planning a second-property purchase should take advice from a conveyancing solicitor and a tax adviser before completion to confirm the correct treatment.
Frequently asked questions
How much stamp duty do I pay on a second home in 2026?
In England and Northern Ireland, the Higher Rates for Additional Dwellings add 5 percentage points to each standard SDLT residential rate band, with effective rates of 5 percent, 7 percent, 10 percent, 15 percent and 17 percent across the bands. In Scotland, the Additional Dwelling Supplement adds a flat 8 percent of the full price on top of standard LBTT. In Wales, Higher Residential Rates apply on each LTT band.
Can I get my second-home stamp duty back?
Yes, where the new property becomes the buyer's main residence and the previous main residence is sold within 36 months of the new purchase. The reclaim is filed with HMRC (for SDLT), Revenue Scotland (for LBTT ADS) or the Welsh Revenue Authority (for LTT). The reclaim covers the difference between the higher rate paid and the standard rate that would otherwise have applied.
Do I pay the second-home stamp duty surcharge if my partner owns another property?
A married couple or civil partnership is treated as a single unit for the additional dwelling test. Property owned by one spouse counts against the other on a new purchase by either of them. The surcharge applies even if the new property is purchased in only one of their names. Unmarried partners are not aggregated unless they are joint buyers on the new purchase.
Does the 5 percent surcharge apply to buy-to-let purchases?
Yes. Buy-to-let purchases are typically additional dwellings (the buyer's main residence is a different property) and attract the Higher Rates for Additional Dwellings in England and Northern Ireland, the Additional Dwelling Supplement in Scotland, and the Higher Residential Rates in Wales. A company purchase of residential property for letting normally also attracts the higher rates.
How is "main residence" defined for stamp duty?
The main residence is the property where the buyer (or the buyer's family) is most settled, judged on the facts. The test takes into account where the buyer spends most time, where their family lives, where the children attend school, where post is received, and similar evidence. A property the buyer rarely uses or holds as a holiday home is not the main residence. The position is fact-based and can be disputed by HMRC in marginal cases.
