Stamp Duty Second Home Calculator UK 2025/26

From 31 October 2024, the additional dwellings surcharge increased from 3% to 5%. This means buyers of second homes or buy-to-let properties pay standard SDLT rates plus 5% on every band. On a £300,000 second home: standard SDLT = £2,500; surcharge = £15,000 (5% of £300,000); total = £17,500.

The 5% surcharge applies if you will own 2 or more residential properties at the end of the day of completion. It applies to: buy-to-let purchases, second homes, holiday homes, and investment properties. It also applies if you are buying a main residence before selling your existing home (but you may be able to claim a refund).

Yes. If you buy a new main residence before selling your old one, you pay the surcharge. But if you sell your previous main residence within 3 years of buying the new one, you can claim a refund of the surcharge from HMRC. The refund must be claimed within 12 months of the sale of the previous home (or within 12 months of the filing date, if later).

Since April 2021, overseas buyers (non-UK residents) pay an additional 2% surcharge on top of standard rates. If an overseas buyer is also purchasing a second home, both the 5% additional dwelling surcharge and the 2% non-resident surcharge apply — totalling 7% on top of standard rates. Residency for SDLT purposes is assessed over the 12 months before completion.

The additional dwelling surcharge does not apply to caravans, mobile homes, or houseboats, as these are not 'dwellings' for SDLT purposes. Standard SDLT may still apply depending on the structure and whether it is classified as a dwelling or non-residential property.

A buy-to-let property is an 'additional dwelling' and attracts the 5% surcharge in addition to standard SDLT. On a £200,000 buy-to-let: standard SDLT on the first £250,000 = £0 (zero-rate band), but the 5% surcharge adds £10,000 (5% × £200,000). Total SDLT = £10,000.

Multiple Dwellings Relief was abolished from 1 June 2024. Previously, MDR allowed the SDLT to be calculated on the average price per dwelling when buying 2+ dwellings in a single transaction, often significantly reducing the bill. Buyers of portfolios now pay full SDLT (plus surcharge if applicable) on each property value.

If you already own a home and purchase a shared ownership property as a second property, the 5% surcharge applies to your SDLT calculation. If you elect to pay SDLT on the full market value upfront, the surcharge applies to the full market value. If you pay in stages, the surcharge applies to each tranche.

Yes, if you inherit a residential property (even a minor share), it counts towards your property tally for SDLT purposes. If you then buy another property while owning the inherited one, the additional dwelling surcharge applies. This catches many unaware buyers who inherit shares in properties.

When a divorcing spouse transfers property to the other as part of a financial settlement under a court order, the normal SDLT rules apply but there is relief for court-ordered transfers between separating couples. However, when a divorcing party then buys a new property while still technically owning the matrimonial home, the surcharge may apply — complex advice is needed.

No. Scotland has Land and Buildings Transaction Tax (LBTT) with its own Additional Dwelling Supplement (ADS) of 6% from April 2024. Wales has Land Transaction Tax (LTT) with a Higher Rates surcharge of 4%. These are completely separate from SDLT, which only applies in England and Northern Ireland.

Purchasing residential property through a company does not avoid the surcharge — companies pay SDLT at higher rates for dwellings over £500,000 (15% flat rate) plus the annual ATED charge. For properties under £500,000, standard rates plus surcharge apply. Corporate buyers have different SDLT considerations and may also pay more in CGT on disposal.