Glossary · UK
What is SDLT Additional Property Surcharge?
A 5-percentage-point Stamp Duty Land Tax surcharge on top of standard rates, payable in England and Northern Ireland when buying an additional residential property, such as a second home or buy-to-let.
Full Definition
The Stamp Duty Land Tax (SDLT) additional property surcharge applies in England and Northern Ireland when an individual purchases a residential property and, at the end of the day of completion, owns two or more residential properties anywhere in the world, unless the new property is replacing their only or main residence. The surcharge was introduced in April 2016 at 3 percentage points and increased to 5 percentage points from 31 October 2024, applying on top of the standard SDLT bands. The surcharge is charged on the full purchase price at each applicable band -- for example, a buy-to-let purchase at £300,000 by someone who already owns a home pays the standard SDLT plus an additional 5% of £300,000 on top, rather than 5% only on the portion above a threshold. First-time buyers purchasing a single property to live in are not subject to the surcharge, and buyers who sell their previous main residence within 36 months of completing on the new one can reclaim the surcharge paid. Companies and other non-natural persons purchasing residential property generally pay the surcharge on every purchase regardless of how many properties they already hold, since the exemption for replacing a main residence does not apply to corporate buyers. A separate 2 percentage point surcharge applies to non-UK resident buyers of any residential property in England and Northern Ireland, which can stack with the additional-property surcharge, meaning a non-resident buying a second home can face a combined 7 percentage point surcharge on top of standard rates. Scotland and Wales operate their own equivalent surcharges (the Additional Dwelling Supplement and Land Transaction Tax higher rates respectively) with different rates and rules.