Second Home Stamp Duty Key Points
- 5% surcharge on top of standard SDLT rates for second homes (increased from 3% on 31 October 2024)
- Surcharge applies to the entire purchase price from the first pound
- No surcharge if you are replacing your main residence and sell the old one first
- Refund available if you sell your previous main residence within 36 months
- Inherited properties may be disregarded if you own 50% or less and inherited within 36 months
- Properties under £40,000 are exempt from the surcharge
Second Home SDLT Rates (2025/26)
When you buy a second home or additional residential property in England or Northern Ireland, you pay the standard SDLT rates plus an additional 5% surcharge. This surcharge applies to every pound of the purchase price, including the portion below the normal nil-rate threshold.
| Up to £125,000 | 5% |
| £125,001 – £250,000 | 7% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1,500,000 | 15% |
| Over £1,500,000 | 17% |
Worked Examples
| Property Price | Standard SDLT | Second Home SDLT | Extra Cost |
|---|---|---|---|
| £200,000 | £1,500 | £11,500 | £10,000 |
| £300,000 | £5,000 | £20,000 | £15,000 |
| £500,000 | £12,500 | £37,500 | £25,000 |
| £750,000 | £25,000 | £62,500 | £37,500 |
When the Surcharge Does NOT Apply
Replacing Your Main Residence
The most important exemption: if you are buying a new main residence and selling your previous one, the surcharge does not apply. If you buy before selling, you pay the surcharge upfront but can claim a refund if you sell within 36 months.
Inherited Properties
An inherited property is disregarded for surcharge purposes if:
- You inherited a 50% share or less of the property, AND
- The inheritance occurred less than 36 months before your new purchase
If you inherited more than 50% or it has been more than 36 months, the inherited property counts as an additional property.
Divorce and Separation
Property transfers between spouses or civil partners under a court order during divorce or dissolution are completely exempt from SDLT. If you buy a new property after separation but before the matrimonial home is sold, you may pay the surcharge initially but can claim a refund once the old property is disposed of.
Properties Under £40,000
Purchases under £40,000 are exempt from the surcharge. However, these properties still count as an additional property for the purposes of future purchases above £40,000.
Related Guides
- Stamp duty surcharge explained — full surcharge details
- Stamp duty refund guide — how to reclaim the surcharge
- Buy-to-let stamp duty — landlord-specific guidance
- Stamp duty rates 2026 — all current rate tables
- Stamp duty exemptions — all reliefs and exemptions
- Free stamp duty calculator
Frequently Asked Questions About Second Home Stamp Duty
You pay a 5% surcharge on top of standard SDLT rates on the entire purchase price. On a £300,000 second home, total SDLT is £20,000 (£5,000 standard + £15,000 surcharge). The surcharge increased from 3% to 5% on 31 October 2024.
The surcharge does not apply if you are replacing your main residence and sell the old one first. If you buy before selling, you pay upfront but can claim a refund within 36 months. There is no way to avoid the surcharge on a genuine second home or holiday home.
Inherited properties are disregarded if you own 50% or less and it has been less than 36 months since the inheritance. Otherwise, the inherited property counts as additional property and the surcharge applies to your next purchase.
Transfers between spouses under a court order during divorce are exempt from SDLT entirely. If you buy after separation but before selling the old home, you may pay the surcharge but can claim a refund once the old property is disposed of within 36 months.
No. Purchases under £40,000 are exempt from the surcharge, though they still count as additional property for future purchases above £40,000.