Stamp Duty on Second Homes and Buy-to-Let

Buying a second home, holiday let or buy-to-let property adds a hefty surcharge on top of standard stamp duty, and that surcharge just got bigger.

The surcharge rose from 3% to 5% on 31 October 2024. See what changed and when.

Second home surcharge rate

5% (on the full purchase price)

Surcharge raised from 3%

31 October 2024

Example: £300,000 second home

£20,000 total SDLT

Additional non-resident surcharge

2% (stacks with the 5%)

What is the second home stamp duty surcharge?

The second home surcharge adds 5% to each stamp duty band when you buy an additional residential property¹. It applies to the whole purchase price, not just the amount above the thresholds, and it comes on top of the standard rates everyone else pays.

This rate rose from 3% to 5% at the Autumn Budget on 31 October 2024. If you're still seeing 3% quoted anywhere, that figure is out of date. For the full picture on the standard rates the surcharge sits on top of, see our guide to how much stamp duty costs in the UK.

Standard SDLT bands used to calculate the surcharge

To work out what you owe, you take the standard bands first, then add 5% of the full price on top. The standard bands changed too: the temporary nil-rate threshold introduced in September 2022 expired on 1 April 2025, as originally legislated, and reverted to its earlier level³.

When does the surcharge apply?

You pay the 5% surcharge if¹:

• You already own another residential property worth over £40,000
• You're buying a buy-to-let property, even if it's your first property purchase
• You're buying a second home or holiday let
• You're replacing your main residence but haven't sold your old one yet

Married couples and joint ownership

The surcharge applies if either spouse owns another property. HMRC treats married couples and civil partners as a single unit for this purpose, so it doesn't help to put the new purchase in the name of the partner who doesn't already own a home. Example: if your spouse owns a flat from before you married and you buy a house together as your main residence, the surcharge applies to the whole purchase, even though you personally have never owned property. Unmarried couples buying jointly are assessed differently: if only one partner owns another property, the surcharge still applies to the joint purchase, because the test looks at all buyers named on the transaction, not just whether the relationship is legally recognised.

Companies buying second homes

A company buying any residential property, its first or its fifth, pays the same additional-property surcharge an individual would pay on a second home, because companies don't get a "main residence" exemption at all. On top of that, companies buying a single dwelling for more than £500,000 usually face a flat 17% rate rather than the standard bands plus surcharge, unless a specific relief applies (such as running a genuine property rental business). If you're buying through a limited company, treat this as a different calculation entirely rather than adjusting the individual figures on this page.

Avoiding the surcharge when moving home

If you're selling your old main residence and buying a new one, you can avoid paying the surcharge permanently by²:

1. Selling first: complete the sale of your old home before or on the same day as buying the new one
2. Claiming a refund: if you have to buy before you sell, pay the surcharge upfront, then claim it back once you sell your old home, as long as that happens within 3 years

The refund claim has to go in within 12 months of selling your old property, or 12 months of the SDLT filing deadline on the new purchase, whichever is later. Our stamp duty refund guide walks through the process step by step.

Second home stamp duty examples

Here's what the 5% surcharge actually costs at different price points, standard SDLT plus surcharge, worked out from scratch using the current bands.

£200,000 buy-to-let flat:

• Standard SDLT: £1,500 (0% on the first £125,000, 2% on the remaining £75,000)
• 5% surcharge: £10,000
• Total: £11,500

£300,000 second home:

• Standard SDLT: £5,000 (0% on £125,000, 2% on the next £125,000 = £2,500, 5% on the remaining £50,000 = £2,500)
• 5% surcharge: £15,000
• Total: £20,000

£400,000 second home:

• Standard SDLT: £10,000 (0% on £125,000, 2% on the next £125,000 = £2,500, 5% on the remaining £150,000 = £7,500)
• 5% surcharge: £20,000
• Total: £30,000

£500,000 second home:

• Standard SDLT: £15,000 (0% on £125,000, 2% on the next £125,000 = £2,500, 5% on the remaining £250,000 = £12,500)
• 5% surcharge: £25,000
• Total: £40,000

Non-UK residents buying an additional property

If you're not a UK resident for SDLT purposes and you're buying an additional property, the costs stack. You pay the standard rate, plus the 5% additional-property surcharge, plus a separate 2% non-resident surcharge⁴. That's up to 7 percentage points on top of the standard bands.

The residence test HMRC uses for this surcharge isn't the same as the general UK tax residence test, and there are refund routes if you become UK resident within a set window after the purchase. Because the rules involve extra tests we don't model here, use the official HMRC stamp duty calculator to get an exact figure for a non-resident purchase rather than relying on the examples above.

Exemptions and special cases

You don't pay the surcharge if:

• It's your only property (first-time buyer, or you've sold all previous properties)
• You're inheriting a property through a will
• You're separating from a spouse or civil partner and one of you is buying out the other's share
• The property is a caravan, mobile home or houseboat

See our exemptions and reliefs guide for the full list of automatic exemptions and reliefs you have to claim yourself.

Scotland and Wales charge their own surcharges

England's 5% surcharge isn't the only version of this tax. Scotland charges an 8% Additional Dwelling Supplement on second homes, the highest flat rate of the three nations; see our Scotland stamp duty guide. Wales uses a wholly separate set of higher-rate bands, not a flat surcharge, for additional properties, ranging from 5% to 17% depending on price; see our Wales stamp duty guide. If you're comparing buy-to-let costs across nations, check the region-specific guide rather than assuming England's rate applies.

Frequently asked questions

Do I pay the surcharge if I'm selling my main home the same day I buy the new one?

No. If the sale of your old home and the purchase of your new one complete on the same day, you're not treated as owning two properties at completion, so the surcharge doesn't apply.

Can I get the surcharge back if I sell my old home later?

Yes, as long as you sell your previous main residence within 3 years of buying the new one. You claim the refund from HMRC within 12 months of the sale.

Does the 5% surcharge apply in Scotland and Wales too?

No. Scotland and Wales set their own rates, covered above.

Last reviewed: 2026-07-03. Rates verified against gov.uk, Revenue Scotland and gov.wales.