Second Home Stamp Duty Calculator 2026 (UK)

Reviewed by Mustafa Bilgic
UK Calculator Editor · Updated May 2026

What counts as a second home for SDLT

HMRC's test for the additional dwelling surcharge is whether you own any major interest in another dwelling worth more than £40,000 anywhere in the world at the end of the day on which you complete on the new purchase. If you do, the second home surcharge applies — even if the new property is your main residence going forward, unless you sell the old one first or simultaneously.

A 'major interest' usually means a freehold or a leasehold with at least 21 years to run. Holiday timeshares typically don't count. Inherited properties count from the date of inheritance — buying a new home shortly after an inheritance often triggers the surcharge unintentionally.

How the surcharge interacts with the £40,000 de-minimis

If the new property's purchase price is below £40,000, no surcharge is due — but standard SDLT still applies (which would be £0 anyway). Land sales below £40k that include a dwelling element are also outside the surcharge.

Caveat: the £40,000 floor is a single-property test. If you purchase six dwellings in one transaction at £35,000 each (£210,000 total), the surcharge does apply because the aggregate price is well above the floor.

Coastal cottage £225,000

Below the £250k standard threshold so 0% standard SDLT. Surcharge 5% × £225,000 = £11,250. Total £11,250. Effective rate 5.00%.

Cotswolds second home £475,000

Standard: 5% × £225,000 above £250k = £11,250. Surcharge: 5% × £475,000 = £23,750. Total £35,000. Effective 7.37%.

Lakeside £1.2m holiday house

Standard: 5% × £675,000 = £33,750 + 10% × £275,000 = £27,500 → £61,250. Surcharge: 5% × £1,200,000 = £60,000. Total £121,250. Effective 10.10%.

Common mistakes to avoid

• Believing 'second home' means a holiday cottage only — HMRC catches any additional dwelling.
• Forgetting that beneficial interests (in trusts, with siblings) count.
• Treating a property with mixed use (B&B-style) as residential — usually it qualifies as mixed-use commercial, escaping the surcharge.
• Missing the 36-month reclaim if your old home sells later within the window.
• Buying via a corporate vehicle to avoid the surcharge — companies are also caught.

When to use this calculator

Run before any second-home offer is signed, especially for holiday-area buyers. Many buyers reverse course when seeing the true tax bill of a £400k cottage hits £27,500.

How this differs in Scotland, Wales and Northern Ireland

Scotland uses 8% ADS within LBTT (raised in December 2024). Wales uses 5% LTT surcharge. England and NI use 5% SDLT surcharge. All three nations test the same 'already owns a dwelling' criterion against worldwide property holdings.

When this calculator is and isn't the right tool

The Second Home Stamp Duty Calculator 2026 (UK) above is built for the most common UK 2025/26 scenarios in this tax area. It will be the right tool when your situation maps cleanly onto the inputs — single property or simple aggregation, standard HMRC rates and bands, and individual taxpayer (rather than complex trust or partnership structures). It is informational and does not replace tailored advice from a chartered tax adviser, especially for transactions above £500,000, cross-border situations, or where reliefs interact with each other. For year-end filings, always reconcile with HMRC's own free calculators on gov.uk before pressing submit on Self Assessment.

Closely related calculators

• BTL SDLT Calculator — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• Additional Property SDLT 2026 — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• Non-UK Resident SDLT — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• UK SDLT Rates 2026 — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• Holiday Let CGT Calculator — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.

Glossary of UK property tax terms

SDLT

Stamp Duty Land Tax — the UK government tax on residential property purchases in England and Northern Ireland.

HRAD

Higher Rates for Additional Dwellings — the formal name for the 5% surcharge on second homes and BTL purchases.

SDLT1

The HMRC return form filed within 14 days of completion to declare and pay SDLT.

Sliced bands

SDLT is charged on slices of the price within each band, not on the whole price at the highest band.

Effective rate

Total SDLT divided by the purchase price, expressed as a percentage.

Tax planning checklist

1. Confirm the figures input above match your actual position — purchase contract, mortgage offer or completion statement.
2. Cross-check the year (2025/26) — figures change every April. The tax year 2026/27 starts 6 April 2026.
3. Use HMRC's official calculator at gov.uk for the final filing figure; this calculator is informational.
4. Keep records for at least 6 years — HMRC's normal enquiry window. 21 years for fraud investigations.
5. Discuss any unusual transaction (joint purchase, gift, divorce settlement, trust) with a qualified tax adviser.
6. Submit your return online via Government Gateway — paper deadlines are earlier and penalties harsher.