Second home stamp duty is the normal Stamp Duty Land Tax plus a 5% surcharge on the whole price. It applies in England and Northern Ireland when, after buying, you will own more than one residential property and you are not simply replacing your main home. Buy-to-let landlords, holiday-home buyers and parents buying for children often pay it.
Key points
- The surcharge has been 5% since 31 October 2024 (it was 3% before).
- It applies to purchases of £40,000 or more, and property you own anywhere in the world counts.
- If you buy a new main home before selling your old one, you pay it, but can claim it back if you sell within 3 years.
- Spouses and civil partners are treated as one buyer. One joint buyer with another home makes the whole purchase pay.
- Non-UK residents pay a further 2% on top.
Second home stamp duty rates
Since 1 April 2025 the higher rates are:
| Part of the price | Normal rate | Higher rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Above £1.5 million | 12% | 17% |
Here is what that means at common prices:
| Price | Only home | Second home / buy-to-let | Extra cost of the surcharge |
|---|---|---|---|
| £150,000 | £500 | £8,000 | 5% of the price |
| £250,000 | £2,500 | £15,000 | 5% of the price |
| £350,000 | £7,500 | £25,000 | 5% of the price |
| £600,000 | £20,000 | £50,000 | 5% of the price |
Every cost for your price and situation in the UK, including taxes for buyers from abroad.
Who pays the stamp duty surcharge
You will usually pay the higher rates if all of these apply:
- the property costs £40,000 or more
- at the end of the day of purchase, you own (or part own) another residential property worth £40,000 or more, anywhere in the world
- you are not replacing your main home (see below)
It does not matter whether you plan to live in the new home. Someone who keeps their flat and buys a house to live in pays the higher rates, unless the flat was never their main home and they have sold their previous main home.
Things that often catch people out:
- Overseas homes count. A holiday flat in Spain or a family house abroad you part-own can trigger the surcharge.
- Property held for children. Parents are treated as owning property held in trust for their children under 18.
Replacing your main residence
The surcharge does not apply if the new property will be your main home and you have sold or given away your previous main home on or before the day you complete. That is the usual chain: you sell and buy on the same day and pay only normal stamp duty of, say, £10,000 on a £400,000 home.
If you buy first and sell later, you pay the higher rates at completion. On a £400,000 home that is £30,000. You then have a window to claim the difference back.
The 3-year refund window
You can claim back the extra if you sell or give away your previous main home within 3 years of buying the new one. You cannot get the refund if you, or your spouse or civil partner, still own any part of the old home.
The deadline for the claim (for sales from 29 October 2018) is 12 months from whichever is later: the date you sold the old home, or the filing date of the return for the new home. HMRC may also allow a refund after 3 years where exceptional circumstances outside your control, such as action by a public authority, stopped the sale.
Joint buyers and couples
- Spouses and civil partners: the rules apply to both of you as if you were buying together, even if you are not. If your husband owns a buy-to-let, your purchase of a second home in your sole name pays the higher rates. This does not apply if you are permanently separated.
- Other joint buyers: if any buyer would pay the higher rates on their own, the whole purchase pays them. A parent who owns their home and goes on the deed to help a child can cost the child the 5% surcharge, and the child also loses first-time buyer relief.
Buying through a company
Companies buying residential property of £40,000 or more generally pay the higher rates on every purchase, because there is no "main home" for a company. Some homes over £500,000 bought by companies can face a single 17% rate instead, unless a relief applies, for example for a genuine property rental business. Company purchases also bring other taxes and costs. This is a specialist area, so get advice from an accountant or tax adviser before you decide.
Worked examples
1. Landlord's first buy-to-let, £200,000. They own their own home, so the higher rates apply: £11,500.
2. Couple upsizing before their sale completes, £500,000. They pay £40,000 on completion. When their old home sells 8 months later, they claim back the difference down to normal rates of £15,000.
3. Overseas investor, £300,000 flat. They own a home abroad and live outside the UK, so they pay the higher rates of £20,000 plus a non-resident surcharge of £6,000. See stamp duty for non-UK residents.
Scotland and Wales
Scotland charges an Additional Dwelling Supplement and Wales has higher residential rates, each with its own rules. See LBTT and LTT explained.
Work out your own figures
Choose "Second home / buy-to-let" in our free stamp duty calculator to see the higher rates, legal costs and, if you live abroad, the non-resident surcharge. Rules last checked 16 October 2026.