Stamp duty

Stamp duty on second homes & buy-to-let

If you buy an additional property, a second home, holiday home or buy-to-let, you pay a stamp duty surcharge on top of the standard rates. The surcharge applies to the whole price and significantly increases the tax due. This guide shows the live figures, when the surcharge applies, and how to reclaim it where you can.

Last reviewed 26 June 2026

In short

Buying an additional property in the UK triggers a stamp duty surcharge. In England and Northern Ireland it is an extra 5% added to every SDLT band. Scotland charges an 8% Additional Dwelling Supplement on the whole price. Wales applies higher LTT rates for additional properties. The surcharge applies even if the second property is abroad, and on a £250,000 buy-to-let it adds several thousand pounds to the bill. You can often reclaim it if you bought before selling your old main home and sell within the time limit.

When the surcharge applies

The higher rates apply when, at the end of the purchase, you (or your spouse or partner) will own more than one residential property and you're not replacing your main residence.

It catches second homes, holiday lets, buy-to-lets and many cases where you buy before selling your existing home. Properties owned anywhere in the world count when deciding whether you own more than one.

It also catches purchases through a limited company, where the surcharge generally applies from the first residential property, and joint purchases where only one buyer already owns a home.

Total stamp duty on an additional property

Tax due when buying a second home or buy-to-let (standard rates plus the surcharge).

Purchase priceEnglandScotlandWalesNorthern Ireland
£150,000£8,000£12,100£7,500£8,000
£250,000£15,000£22,100£14,950£15,000
£350,000£25,000£36,350£24,950£25,000
£500,000£40,000£63,350£42,450£40,000

Just the extra surcharge

How much more you pay versus buying the same property as your only home.

Purchase priceEnglandScotlandWalesNorthern Ireland
£150,000£7,500£12,000£7,500£7,500
£250,000£12,500£20,000£13,450£12,500
£350,000£17,500£28,000£17,450£17,500
£500,000£25,000£40,000£24,450£25,000

How each nation charges the surcharge

NationSurchargeApplied to
England & N. IrelandExtra 5%Added to each standard SDLT band
Scotland8% ADSThe full purchase price, on top of standard LBTT
WalesHigher LTT ratesA separate, higher band set for additional properties

How each nation charges it

  • England & Northern Ireland: an extra 5% added to each standard SDLT band.
  • Scotland: an 8% Additional Dwelling Supplement (ADS) on the full purchase price, on top of standard LBTT.
  • Wales: a separate, higher set of LTT rates for additional residential properties.

How to reclaim the surcharge

If you paid the surcharge only because you bought your new main home before selling the old one, follow these steps.

  1. Sell your previous main residence

    You must dispose of your old main home within the allowed window, commonly three years in England and Northern Ireland.

  2. Gather your completion details

    You'll need the dates and prices of both transactions and your original SDLT or LBTT return reference.

  3. Submit the refund claim

    Apply to HMRC (or Revenue Scotland for ADS) within the claim deadline. Your solicitor can usually do this for you.

  4. Receive the refund

    The surcharge element is repaid once the claim is approved, often within a few weeks.

England & N. Ireland standard SDLT bands (before the +5% surcharge)

Portion of priceRate
£0 – £125,0000%
£125,000 – £250,0002%
£250,000 – £925,0005%
£925,000 – £1,500,00010%
£1,500,000+12%

SDLT bands effective 1 April 2025.

You may be able to reclaim the surcharge

If you pay the surcharge because you bought a new main home before selling your old one, you can usually reclaim it if you sell the previous main residence within the allowed window (commonly three years). On a £250,000 purchase the surcharge alone is around £12,500 in England, so reclaiming matters.

Common questions

How much is stamp duty on a second home?

In England and Northern Ireland you pay an extra 5% on every band, so a £250,000 second home costs about £15,000 versus £2,500 for an only home. Scotland adds an 8% supplement on the whole price and Wales uses higher LTT rates.

Do I pay the surcharge if my other property is overseas?

Yes. Property you own anywhere in the world counts when deciding whether you'll own more than one residential property, so an overseas home can trigger the UK additional-property surcharge.

Can I get the second-home stamp duty back?

If you paid the surcharge because you bought your new main home before selling your old one, you can usually claim a refund once you sell the previous main residence within the time limit (commonly three years in England). Buy-to-lets and genuine second homes are not refundable.

Does the surcharge apply if I buy through a company?

Generally yes. Companies and other non-natural buyers usually pay the additional-property rates from the first residential property, and very high-value company purchases can attract a separate flat rate, so take advice before buying through a limited company.

What if I'm buying with my partner and only I own a home?

The surcharge usually applies to the whole purchase if either buyer already owns a residential property, because married couples and civil partners are treated as a single unit. The status of every buyer matters.

Is there a price below which the surcharge doesn't apply?

In England and Northern Ireland the surcharge applies to additional properties above a low minimum value; very cheap purchases below the threshold may be exempt. Scotland and Wales have their own minimum thresholds, so check the nation's rules.

Does the surcharge apply to a holiday home I'll use myself?

Yes. The surcharge is about how many residential properties you own, not how you use them. A holiday home you keep alongside your main residence is an additional property and attracts the surcharge.

How is the surcharge different in Scotland and Wales?

Scotland charges an 8% Additional Dwelling Supplement on the full price on top of LBTT, while Wales sets entirely higher LTT bands for additional properties rather than a percentage add-on. Both differ from the England and Northern Ireland 5% surcharge.

Sources

Related guides

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