Stamp Duty on a Second Home: The 5% Higher Rates
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If you will own more than one residential property after the purchase, you usually pay 5% on top of every SDLT band. The higher rates are 5% up to £125,000, 7% to £250,000, 10% to £925,000, 15% to £1.5 million and 17% above.
Example: a £300,000 buy-to-let costs £6,250 + £8,750 + £5,000 = £20,000, the figure in GOV.UK's own example.
Want your own figure? Use our stamp duty calculator for England and Northern Ireland.
The higher rates for additional dwellings apply in England and Northern Ireland when you buy a residential property and will own more than one at the end of the day of purchase. Since 1 April 2025 the surcharge is 5 percentage points (GOV.UK: higher rates for additional residential property).
The higher-rate bands
| Portion of the price | Standard 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% |
Worked examples
| Price | Standard SDLT | With 5% higher rates | Extra cost |
|---|---|---|---|
| £180,000 | £1,100 | £10,100 | £9,000 |
| £300,000 | £5,000 | £20,000 | £15,000 |
| £400,000 | £10,000 | £30,000 | £20,000 |
| £650,000 | £22,500 | £55,000 | £32,500 |
| £1,000,000 | £43,750 | £93,750 | £50,000 |
The extra cost is always 5% of the full price, because the surcharge is added to every band from the first pound.
When the higher rates usually apply
- Buying a buy-to-let, holiday home or second home while keeping your current home.
- Buying a new main home before your old one is sold (you may be able to claim the extra back later; see below).
- Property owned anywhere in the world counts, and spouses or civil partners are usually treated as one unit.
When they usually do not apply
- You are replacing your main residence and the previous one was sold on or before the day you complete.
- The property costs less than £40,000.
- After the purchase you will only own one residential property.
The 36-month refund rule
If you pay the higher rates because your old main home had not sold yet, GOV.UK says you can usually claim a refund of the surcharge if you sell or give away the previous main home within 36 months of buying the new one. On a £400,000 replacement home that refund would be £20,000.
Non-UK residents
A further 2% applies to buyers who are not UK resident for SDLT purposes, and it stacks with the 5%. A non-resident buying a £300,000 additional property pays 7% + 9% + 12% across the slices: £26,000.
Check your own figure
Pick "additional property" in the Talreon UK stamp duty calculator to see the higher-rate breakdown for your price.
Frequently asked questions
How much is stamp duty on a second home?
Usually standard SDLT plus 5% of the full price. On £300,000 that is £20,000 instead of £5,000.
Can I get the second-home surcharge back?
If you paid it because your previous main home had not sold, you can usually claim a refund when you sell it within 36 months of buying the new home.
Does the 5% surcharge apply to properties under £40,000?
No. GOV.UK says purchases under £40,000 do not attract the higher rates.
Do non-UK residents pay more on a second home?
Yes. The 2% non-resident surcharge stacks with the 5% higher rates.
Sources
- GOV.UK: Stamp Duty Land Tax, buying an additional residential property
- GOV.UK: Stamp Duty Land Tax residential property rates
Related tools
- UK stamp duty calculator — band-by-band SDLT for any price.
- Mortgage calculator — monthly repayment on the loan.
- ISA savings calculator — saving towards a deposit.
Related guides
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