Answers · UK 2025/26
How does Stamp Duty work on a second home in the UK?
Buying a second home or buy-to-let property in England adds a 5% stamp duty surcharge on top of standard SDLT rates (from October 2024, increased from 3%). On a £300,000 second property: standard SDLT would be £2,500 + 5% surcharge of £15,000 = £17,500 total.
Full answer
**Stamp Duty Land Tax (SDLT)** on a second home or buy-to-let property in England adds a surcharge on top of the standard residential rates. The surcharge was increased in the October 2024 Autumn Budget. **SDLT rates for second homes in England (from 31 October 2024):** | Property value | Standard rate | Surcharge | Total rate | |---|---|---|---| | £0 – £250,000 | 0% | 5% | **5%** | | £250,001 – £925,000 | 5% | 5% | **10%** | | £925,001 – £1.5m | 10% | 5% | **15%** | | Over £1.5m | 12% | 5% | **17%** | **Worked example — £300,000 second property:** - £250,000 at 5% = £12,500 - £50,000 at 10% = £5,000 - **Total SDLT: £17,500** **History of the surcharge:** - April 2016: 3% surcharge introduced - 31 October 2024: Increased to **5%** **Scotland (Additional Dwelling Supplement — ADS):** Scotland charges an **8% ADS** on top of Land and Buildings Transaction Tax (LBTT). On a £300,000 second property in Scotland: LBTT £4,600 + ADS £24,000 = **£28,600 total**. **Wales (Higher Rates for Additional Dwellings — HRAD):** Wales charges a **5% surcharge** on top of Land Transaction Tax (LTT) for additional dwellings. **Replacing your main residence:** If you sell your main home and buy a new one, you do not pay the surcharge — even if you temporarily own two properties. If you complete on the new property before selling the old one, you pay the full surcharge upfront, but can **reclaim it within 3 years** of selling the original main home. **Overseas properties count:** If you own a property abroad, HMRC treats this as an "additional dwelling" — meaning buying your first UK home could still attract the surcharge if you own property overseas. **Joint buyers:** If either buyer in a joint purchase owns another property (anywhere in the world), the surcharge applies to the entire transaction. **Limited companies:** Limited companies pay standard SDLT + the 5% surcharge on ALL residential purchases (regardless of whether it's their first property). There is no main-residence exemption for companies.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.