Answers · UK 2025/26
Do I pay stamp duty on a second home?
Yes — additional dwellings purchased in England or Northern Ireland incur a 5% SDLT surcharge on every band, on top of standard rates. It applies to second homes, buy-to-lets and holiday lets above £40,000. The surcharge rose from 3% to 5% on 31 October 2024.
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The Higher Rates on Additional Dwellings (HRAD) apply when, at the end of the day of completion, you own two or more residential properties anywhere in the world and are not replacing a main residence. Since 31 October 2024 the surcharge is 5% (up from 3%). On a £300,000 second home in 2025/26: standard SDLT £0 + £2,500 + £2,500 = £5,000 plus surcharge 5% × £300,000 = £15,000 — total £20,000. The surcharge applies to the entire purchase price (not slices above £125k). Properties under £40,000 escape it, as do houseboats, caravans and most mixed-use deals. If you buy a new main home before selling the old one, you pay the surcharge but can reclaim it from HMRC within 12 months of selling the original main residence (provided that sale happens within 36 months of completion). Married couples and civil partners are treated as one unit — owning anything between you can trigger the surcharge. Companies and trusts pay the surcharge from £40,000 with no exemption, and 15% flat rate applies to corporate purchases over £500,000 unless a relief such as property-rental business applies.
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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.