UK Stamp Duty on Additional Properties 2026/27: 5% Surcharge Explained
Buying a second home or buy-to-let? A 5% SDLT surcharge applies on top of standard rates. Full guide with worked examples and refund rules for 2026/27.
What Is Stamp Duty Land Tax on Additional Properties?
Stamp Duty Land Tax (SDLT) is the tax you pay when you buy residential property in England and Northern Ireland. Wales has Land Transaction Tax (LTT) and Scotland has Land and Buildings Transaction Tax (LBTT) -- both have their own surcharges for additional properties, but this guide focuses on SDLT in England and Northern Ireland.
Since October 2024, buyers of additional residential properties pay a 5% surcharge on top of the standard SDLT rates at every band. This covers:
- Second homes
- Buy-to-let properties
- Holiday homes
- Any residential property if you already own another
Standard SDLT Rates 2026/27
These rates apply to a buyer's only or main home:
| Purchase Price | Standard SDLT Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Note: The nil-rate threshold for residential property was cut back to £125,000 from 31 March 2025 (the temporary relief introduced in 2022 ended). First-time buyers retain an enhanced nil-rate band up to £300,000, with 5% on the portion between £300,001 and £500,000.
Additional Property SDLT Rates 2026/27
For additional properties, add 5 percentage points to each band:
| Purchase Price | Additional Property SDLT Rate |
|---|---|
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1,500,000 | 15% |
| Over £1,500,000 | 17% |
Worked Example: £300,000 Buy-to-Let Purchase
Let us calculate the SDLT on a £300,000 buy-to-let property:
| Portion | Rate | SDLT Due |
|---|---|---|
| £0 to £125,000 | 5% | £6,250 |
| £125,001 to £250,000 | 7% | £8,750 |
| £250,001 to £300,000 | 10% | £5,000 |
| Total SDLT | £20,000 |
For comparison, if this were the buyer's only residential property (standard rates):
| Portion | Rate | SDLT Due |
|---|---|---|
| £0 to £125,000 | 0% | £0 |
| £125,001 to £250,000 | 2% | £2,500 |
| £250,001 to £300,000 | 5% | £2,500 |
| Total SDLT | £5,000 |
The surcharge costs an additional £15,000 on this transaction -- exactly 5% of the £300,000 purchase price, as the 5% uplift applies uniformly to every band.
What Counts as an "Additional" Property?
You are buying an additional property if, at the end of the day of completion:
- You own two or more residential properties, AND
- You are not replacing your main residence (or the transaction is not the replacement of your main residence)
The Main Residence Replacement Rule
If you are selling your current main home and buying a new one, the surcharge does not apply -- even if you own other properties, provided the purchase is a genuine main residence replacement.
However, timing matters. If you buy your new home before selling the old one, you temporarily own two properties and must pay the surcharge upfront. You then have 36 months to sell the old main home and claim a refund.
Joint Purchases
If either buyer already owns a residential property, the surcharge applies to the whole transaction. A first-time buyer purchasing with a partner who already owns a property pays the additional property rates, not first-time buyer rates.
The 36-Month Refund Rule
If you paid the surcharge because you completed on a new main home before selling your previous main home, you can reclaim it by submitting an amended SDLT return if you sell the old property within 36 months of the new purchase.
Claiming the Refund
The refund claim must be made within:
- 12 months of the date of sale of the previous main residence, OR
- 12 months of the filing date of the original return
...whichever is later. You can claim online through HMRC's portal or by writing to HMRC Stamp Duty Land Tax.
The amount refunded is the 5% surcharge paid. HMRC does not pay interest on refunds for SDLT overpayments in most standard circumstances.
Properties Under £40,000
If you purchase a residential property for less than £40,000, the additional property surcharge does not apply. This is an absolute exemption, not a nil-rate band -- the entire transaction is outside the surcharge rules.
Exemptions and Special Cases
Inherited Properties
If you inherit a residential property (rather than purchase it), this does not automatically trigger the surcharge on a future purchase. However, if you then buy another property while still owning the inherited one, the surcharge will apply.
There is also a partial exemption: if you own a share of a property through inheritance worth 50% or less and you have not purchased a residential property in the last 3 years, you may be exempt from the surcharge on a subsequent purchase. The rules here are complex and HMRC guidance should be reviewed carefully.
Divorce and Separation
Properties transferred between spouses or civil partners under a court order following divorce or separation are generally exempt from the surcharge. The order in which properties are split matters -- seek legal advice specific to your circumstances.
Caravans, Houseboats, and Mobile Homes
These are not "dwellings" for SDLT purposes and therefore neither the standard rates nor the additional property surcharge applies to their purchase.
Mixed-Use Properties
If you buy a property with both residential and non-residential elements (for example, a flat above a shop), the transaction may qualify for non-residential SDLT rates, which are lower and do not carry the residential surcharge. The rules on mixed-use are detailed and often contested -- professional advice is strongly recommended.
Non-UK Residents: Additional 2% Surcharge
Non-UK residents purchasing residential property in England and Northern Ireland pay an additional 2% surcharge on top of all the rates above. This applies regardless of whether the property is a main home or additional property.
A non-UK resident buying an additional property at £300,000 would therefore face:
- Standard rates: 5% (own residence) / 0% (standard)
- Additional property surcharge: +5%
- Non-resident surcharge: +2%
- Total effective rate at each band: up to 19% at the highest bands
Planning Considerations
Timing of Transactions
If you are in the process of selling your main home and buying a new one, synchronise completions carefully. Completing the purchase before the sale means paying the surcharge and then reclaiming it -- this ties up cash and involves admin. Completing the purchase after (or simultaneously with) the sale avoids the surcharge entirely.
Corporate Structures
Properties held in companies are subject to SDLT, and the surcharge applies to companies purchasing residential property. Additionally, properties held in companies with a value above £500,000 may be subject to the Annual Tax on Enveloped Dwellings (ATED), an additional charge worth reviewing if you are considering a corporate structure.
Portfolio Landlords
If you own multiple properties, SDLT on each acquisition compounds over time. A landlord buying a £250,000 property as their fifth acquisition pays approximately £12,500 more in SDLT than they would have under the pre-October 2024 rates (when the surcharge was 3%). Running SDLT projections as part of your yield analysis is essential.
Summary
The 5% additional property SDLT surcharge significantly increases the cost of acquiring buy-to-let, second homes, and holiday properties. On a £300,000 purchase, the total SDLT bill is £20,000 versus £5,000 for a main residence purchase. The 36-month refund rule provides a safety valve if you are moving home, but it requires proactive action within the time limit. Factor SDLT into your return calculations from the very start of any additional property transaction.
Frequently asked questions
What is the stamp duty surcharge on additional properties in 2026/27?
A 5% surcharge applies on top of standard SDLT rates for all additional residential properties, including buy-to-let and second homes. This rate increased from 3% to 5% in the October 2024 Autumn Budget.
Can I get a refund of the additional property surcharge?
Yes. If you buy a new main home before selling your previous one, you pay the 5% surcharge upfront, but you can claim a refund if you sell the old main home within 36 months of the purchase date.
Are there any exemptions from the additional property surcharge?
The main exemptions include purchases under 40,000 pounds, certain transactions involving divorce or separation, and purchases of caravans, mobile homes, or houseboats. Inherited properties may not trigger the surcharge if you have not purchased them.
In-depth guides
Related reading
Mixed-Use Property SDLT 2026: Non-Residential Rates Save Stamp Duty
Buying a property that contains both residential and commercial elements can qualify for non-residential SDLT rates, potentially saving tens of thousands of pounds. Here is what counts as mixed use and what the case law says.
Non-Resident SDLT Surcharge UK 2026: 2% Extra Stamp Duty
Buying UK property from abroad? The 2% non-resident SDLT surcharge stacks on top of standard rates and the 3% additional-property charge. Here is what to pay and when.
Right to Buy 2026: Eligibility, Discount Caps & Cost of Buying Your Council Home
Right to Buy lets eligible council tenants in England buy their home at a discount. In 2026 the urban cap is £38,000 and the rural cap is £16,000. Here is the full eligibility and cost guide.