Comparison · Property & Tax · 2026/27
Second Home Stamp Duty vs Buy-to-Let Stamp Duty UK 2026/27
A second home and a buy-to-let property attract the identical 5% SDLT additional property surcharge -- the tax does not distinguish by intended use. This 2026/27 guide clarifies where they genuinely differ: refund eligibility and ongoing tax treatment.
Key facts -- 2026/27
- • SDLT additional property surcharge: 5% (England/NI)
- • Scotland ADS: 8%
- • Non-resident surcharge: +2%, on top of the above
- • Refund window: 3 years, main residence replacement only
- • Section 24 mortgage interest relief: 20% credit for let properties
- • Council tax premium: up to 100% for unoccupied second homes
Same Surcharge, Different Ongoing Treatment
At the point of purchase, SDLT does not care whether you plan to holiday in the property or rent it out -- the surcharge is triggered purely by owning more than one residential property. The genuine differences emerge after purchase: a let property generates taxable rental income and faces the Section 24 mortgage interest restriction, while a purely personal second home does not.
The refund mechanism is also frequently misunderstood -- it exists specifically for people replacing their main residence, not for anyone who simply owns two properties, regardless of whether the second is used personally or let out.
Worked Example: GBP 350,000 Additional Property
| Item | Second home (personal) | Buy-to-let |
|---|---|---|
| SDLT (standard + 5% surcharge) | Same amount | Same amount |
| Ongoing rental income tax | None (if not let) | Taxable, Section 24 applies |
| CGT on eventual sale | Applies, no PRR | Applies, no PRR |
Illustrative only -- confirm exact figures with a conveyancer. Use the stamp duty calculator to estimate your SDLT bill including the surcharge.
Side-by-Side Comparison
| Factor | Second home | Buy-to-let |
|---|---|---|
| SDLT surcharge | 5% (same) | 5% (same) |
| Refund eligibility | Only if replacing main home | Generally not eligible |
| Rental income tax | None if not let | Taxable |
| Council tax premium risk | Higher if unoccupied | Lower if genuinely let |
| CGT on sale | Applies | Applies |