Answers · UK 2025/26
How much tax do I pay on a second property in the UK?
A second property attracts a 5% Stamp Duty surcharge on purchase, Income Tax on any rental profit, and Capital Gains Tax at 18/24% on sale. On a £300,000 second home the SDLT surcharge alone adds about £15,000 on top of standard duty.
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Owning a second property in the UK triggers tax at three stages for 2026/27. On purchase, a 5% surcharge is added to standard Stamp Duty across every band for additional dwellings in England and Northern Ireland. Worked example: a £300,000 second home pays standard SDLT plus 5% × £300,000 = £15,000 surcharge, taking the bill to roughly £20,000. While you own it, any rental income is added to your other income and taxed at 20/40/45%, with mortgage interest now relieved only as a 20% tax credit rather than a deduction. When you sell, Capital Gains Tax applies because a second home does not get Private Residence Relief: the first £3,000 gain is exempt, then 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, payable within 60 days. If you sell a £300,000 property bought for £240,000, the £60,000 gain less the £3,000 allowance leaves £57,000 taxable — up to £13,680 at 24%. Scotland and Wales apply their own purchase taxes (LBTT with a 6% Additional Dwelling Supplement in Scotland) but CGT is UK-wide. Use the Stamp Duty and Capital Gains Tax calculators to estimate the full cost of a second property.
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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.