Stamp Duty on a second home: How much extra will you pay?

Key takeaways

• Most buyers pay higher rates of Stamp Duty when purchasing a second residential property.
• The surcharge applies whether you're buying a holiday home or an investment property.
• If you're replacing your main residence, you may not have to pay the higher rates or could claim a refund later.
• Your conveyancer will usually calculate and submit the Stamp Duty return on your behalf.

Buy a home to live in and Stamp Duty is an irritation. Buy a second one and it becomes a serious line in the budget. England and Northern Ireland charge a 5% surcharge on top of every standard band when you purchase an additional residential property, and Scotland and Wales charge their own, steeper equivalents.

This article sets out the current rates, shows the sums on a worked example, and covers the exemptions and the refund rules that catch movers rather than investors. Tax depends on personal circumstances, so treat this as general information rather than advice.

Pro tip: If you're looking for a complete breakdown of all residential Stamp Duty rates, thresholds and first-time buyer reliefs, read our complete guide to Stamp Duty.

When does the second home surcharge apply?

The higher rates generally apply if:

• you're buying a residential property costing £40,000 or more;

• you'll own more than one residential property after completion; and

• you're not replacing your main residence.

The rules apply to holiday homes, second residences and most buy-to-let purchases. Married couples and civil partners are usually treated as a single household for Stamp Duty purposes, meaning one partner's ownership can affect the tax payable by both.

It does not matter whether the new property is a holiday home, a buy to let or even a home you intend to live in; what counts is how many properties you own when the day ends. The full rules are set out in the government's higher-rates guidance.

The rates in England and Northern Ireland

The surcharge adds 5 percentage points to every band of standard stamp duty, including the band that is normally tax free. The current higher rates are:

• 5% on the first £125,000.
• 7% on the portion from £125,001 to £250,000.
• 10% on the portion from £250,001 to £925,000.
• 15% on the portion from £925,001 to £1.5 million.
• 17% on anything above £1.5 million.

For example, on a £300,000 second home, you'd be expected to pay:

• 5% on the first £125,000, which is £6,250.
• 7% on the next £125,000, which is £8,750, and
• 10% on the final £50,000, which is £5,000.

That comes to a total of £20,000.

The same house bought as your only main property would cost £5,000 in stamp duty. Owning one other property turns a £5,000 bill into a £20,000 one.

Non-UK residents add a further 2% surcharge on top, and companies buying residential property pay even higher rates, with a 17% flat rate possible on purchases over £500,000.

Scotland and Wales

Stamp Duty only applies in England and Northern Ireland.

Scotland charges Land and Buildings Transaction Tax (LBTT) together with the Additional Dwelling Supplement, while Wales uses Land Transaction Tax (LTT) with its own higher-rate bands.

The Additional Dwelling Supplement, in Scotland, is 8% of the entire purchase price on top of the Standard Land and Buildings Transaction Tax. While in Wales, the Land Transaction Tax goes from 5% on the first £180,000 to 17% on higher priced properties.

For a comprehensive breakdown of all Stam Duty tax thresholds across UK, Scotland and Wales, read our Stamp Duty in 2026 guide.

Replacing your main residence: The exemption and the refund

The surcharge is aimed at additional properties, not at homeowners moving house. If you are replacing your main residence, you pay standard rates even though you may briefly own two properties.

Where timing goes wrong, you buy the new home before the old one sells, you must pay the higher rates upfront, but you can reclaim the surcharge element if you sell your previous main residence within three years of the purchase.

Where timing means you temporarily own two properties—for example, you've bought your new home before selling your existing one—you'll usually pay the higher rate initially but may be able to reclaim the surcharge once your previous home is sold, provided you meet HMRC's conditions.

The claim must generally be made within 12 months of that sale. If you complete a purchase while your old home remains unsold, the refund rules are the safety net; budget for the higher-rate outlay in the meantime, because HMRC does not wait.

What does and does not count

A few boundary cases decide real bills. Property counted towards the two-property test includes homes owned anywhere in the world, property held for children under 18, and interests inherited or held through certain trusts.

Property that does not count includes anything worth less than £40,000, mixed-use premises such as a shop with a flat above, and moveable homes like caravans and houseboats. Leases granted for seven years or less are also outside the rules, as is property someone else holds on a lease with more than 21 years to run.

If your situation involves trusts, inherited shares of property or a company purchase, take advice before you exchange rather than relying on general guidance; the boundary cases are exactly where HMRC enquiries concentrate.

Who pays the Stamp Duty?

Although your conveyancer will usually prepare and submit the Stamp Duty return, the legal responsibility for paying the correct amount remains with you.

Before completion, make sure your conveyancer knows:

• how many residential properties you own;
• whether you're replacing your main residence;
• whether you're buying jointly; and
• whether the property will be used as a holiday home or investment.

Providing this information early helps avoid delays and unexpected tax bills.

Paying the 14-day deadline

Whichever rates apply, the stamp duty return must be filed and the tax paid within 14 days of completion. In practice your conveyancer prepares the return, collects the money at completion and files on your behalf, but the liability is yours, and late filing triggers automatic penalties.

Make sure your completion statement shows the surcharge calculated correctly, and query anything that assumes standard rates if you will own two properties at the end of the day.

The bottom line

Buying a second home almost always means paying higher rates of Stamp Duty, making it one of the largest upfront costs to budget for. It's worth reading our hidden costs to buying a property as well as our stamp duty rates in 2026 guide for a deeper dive into this subject.

Before making an offer, make sure you understand whether the surcharge applies, whether you qualify for any exemptions or refunds, and how much tax you'll need to pay on completion.