Second Home and Buy-to-Let Stamp Duty in England & Northern Ireland
Higher rates add a fixed number of percentage points to every SDLT band where a purchase leaves you owning more than one dwelling.
The higher rates for additional dwellings are the most expensive rule in Stamp Duty Land Tax for ordinary buyers. Where a purchase leaves you owning more than one dwelling and the price is £40,000 or more, 5 percentage points are added to every band of the standard table, including the band that would otherwise be charged at nothing. The test looks at what you own at the end of the day of completion, not at what you intend to do with the property. A buyer who is genuinely replacing their only or main residence is outside the rules, and a buyer who cannot sell in time can often reclaim later.
Who the surcharge catches
Second homes, holiday homes and buy-to-let purchases are the obvious cases, but the rule is broader than that. It catches a buyer who keeps a rental property and buys a home to live in, a buyer purchasing with someone who already owns elsewhere, and property inherited or part-owned counted alongside the new purchase. Most company purchases and most purchases through trusts are caught regardless of how many dwellings are involved. What is tested is the number of dwellings owned at the end of the day of completion.
The threshold is a floor on the whole surcharge
The higher rates apply only where the price is £40,000 or more. This is not a nil-rate band. Below that figure the higher rates do not apply at all and the standard table is used. At exactly that figure, and at every price above it, the higher rates apply from the first pound of the price rather than only to the amount above the threshold. That makes the threshold a step, so a purchase just at it carries a noticeably larger bill than one just below.
Replacing a main residence, and the refund route
A buyer selling their only or main residence and buying a replacement is not subject to the higher rates, even if they own other property, provided the sale and purchase line up. Where the new home is bought before the old one sells, the higher rates are paid at completion and reclaimed once the previous main residence is sold, if that sale happens inside the window HM Revenue & Customs allows. The refund is claimed from HMRC and is not automatic, so the deadline matters.
What the surcharge costs in England & Northern Ireland
| Price | Home mover | Additional property | Extra | Effective rate |
|---|---|---|---|---|
| £150,000 | £500 | £8,000 | £7,500 | 5.3% |
| £200,000 | £1,500 | £11,500 | £10,000 | 5.8% |
| £250,000 | £2,500 | £15,000 | £12,500 | 6% |
| £300,000 | £5,000 | £20,000 | £15,000 | 6.7% |
| £400,000 | £10,000 | £30,000 | £20,000 | 7.5% |
| £500,000 | £15,000 | £40,000 | £25,000 | 8% |
| £750,000 | £27,500 | £65,000 | £37,500 | 8.7% |
| £1,000,000 | £43,750 | £93,750 | £50,000 | 9.4% |
The same second home across the UK
| Nation | Tax | Payable |
|---|---|---|
| England & Northern Ireland | SDLT | £30,000 |
| Scotland | LBTT | £45,350 |
| Wales | LTT | £29,950 |
Check your own price
SDLT on a £400,000 property in England & Northern Ireland as an additional property. That is an effective rate of 7.5%.
Common questions
I am buying a home to live in but I own a rental. Do I pay the higher rates?
Usually yes, because the test is how many dwellings you own at the end of the day of completion, not what you intend to live in. The exception is where the purchase replaces your only or main residence and the previous one is sold in time.
Can I get the surcharge back if my old home sells later?
Where the purchase replaced your only or main residence and the previous home sells within the window HM Revenue & Customs allows, the higher-rate amount can be reclaimed. The claim goes to HMRC and must be made within the applicable time limit.
Do the higher rates apply in Northern Ireland?
Yes. Northern Ireland uses SDLT at rates identical to England, so the higher rates for additional dwellings, the threshold and the refund route all apply there on the same terms.
Source: HMRC. Rates effective from 1 April 2025, verified 9 August 2026. Figures are computed from the published rate tables and checked against HMRC’s own calculator.