Stamp Duty Surcharge Key Facts
- 5% additional property surcharge applies on top of standard SDLT rates (increased from 3% on 31 October 2024)
- 2% non-UK resident surcharge applies on top of all other rates since April 2021
- Combined maximum surcharge: 7% above standard rates (non-UK resident buying additional property)
- Surcharge applies to the entire purchase price, not just the portion above a threshold
- Companies buying residential property always pay the additional property surcharge
- Refund available if you sell your previous main residence within 36 months
The 5% Additional Property Surcharge
If you purchase a residential property in England or Northern Ireland and you already own one or more residential properties, you must pay a 5% surcharge on top of the standard SDLT rates. This applies to the total purchase price, not just the amount above the nil-rate threshold.
The surcharge was originally introduced at 3% in April 2016 and was increased to 5% on 31 October 2024. It affects buyers of second homes, buy-to-let properties, holiday lets, and any additional residential purchases.
| 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% |
Who Pays the Additional Property Surcharge?
- Anyone buying a residential property who already owns another residential property (in the UK or abroad)
- Buy-to-let investors purchasing rental property
- Buyers of second homes and holiday homes
- Companies and trusts buying residential property worth £40,000 or more
- Parents buying a property for a child if the parent already owns a property and is named on the purchase
When the Surcharge Does NOT Apply
- Replacing your main residence: if you sell your old home before or on the same day as buying the new one
- Properties under £40,000: the surcharge only applies to purchases of £40,000 or more
- Caravans, mobile homes and houseboats: these are not classified as dwellings for surcharge purposes
- Divorce/separation orders: transfers between spouses under a court order are exempt
- Inheriting a minor interest: if you inherited 50% or less of a property and it is worth less than £40,000, this is disregarded
The 2% Non-UK Resident Surcharge
Since 1 April 2021, non-UK residents purchasing residential property in England and Northern Ireland pay a 2% surcharge on top of all other applicable SDLT rates. This applies whether you are buying your first property or an additional one.
You are treated as a non-UK resident for SDLT purposes if you were not present in the UK for at least 183 days during the 12 months before the purchase date. For joint purchases, if any buyer is non-UK resident, the surcharge applies to the entire transaction.
Combined Surcharge Rates
Surcharges stack. A non-UK resident buying an additional property pays both the 5% additional property surcharge and the 2% non-UK resident surcharge, totalling 7% above standard rates.
| Property Price | Standard SDLT | + 5% Surcharge | + 5% + 2% Surcharges |
|---|---|---|---|
| £250,000 | £2,500 | £15,000 | £20,000 |
| £400,000 | £10,000 | £30,000 | £38,000 |
| £600,000 | £20,000 | £50,000 | £62,000 |
| £1,000,000 | £32,500 | £82,500 | £102,500 |
Limited Company Purchases
When a company buys residential property worth £40,000 or more, the additional property surcharge always applies, even if the company does not already own other residential property. This is a deliberate policy to discourage the use of company structures to avoid stamp duty.
For residential properties purchased by a company for more than £500,000, the purchase may be subject to the 15% flat rate for certain corporate purchases. This rate applies instead of the standard rates and is part of the Annual Tax on Enveloped Dwellings (ATED) regime. Reliefs are available for property rental businesses, property developers, and properties held for employees.
Related Guides
- Stamp duty on second homes — detailed rules and exemptions
- Buy-to-let stamp duty — landlord-specific guidance
- Stamp duty refund guide — how to reclaim the surcharge
- Stamp duty rates 2026 — all current rate tables
- Stamp duty exemptions — all reliefs and exemptions
- Commercial property stamp duty — non-residential rates
- Free stamp duty calculator — calculate your SDLT instantly
Frequently Asked Questions About the Stamp Duty Surcharge
The additional property surcharge is 5% on top of standard SDLT rates. It applies when you buy a residential property and already own another residential property. The surcharge increased from 3% to 5% on 31 October 2024. It applies to the entire purchase price from the first pound.
Yes. Non-UK residents pay a 2% surcharge on top of all other SDLT rates when buying residential property in England and Northern Ireland. A non-UK resident is someone who spent fewer than 183 days in the UK in the 12 months before the purchase. This surcharge stacks with the additional property surcharge if applicable.
Yes. Companies purchasing residential property worth £40,000 or more always pay the additional property surcharge (5%), regardless of whether they already own other properties. Properties over £500,000 purchased by companies may be subject to the 15% flat rate under the ATED rules.
The surcharge does not apply if you are replacing your main residence and sell your old home before or on the same day. If you buy before selling, you pay the surcharge upfront but can claim a refund within 36 months. The surcharge also does not apply to purchases under £40,000 or to caravans, mobile homes and houseboats.
On a £300,000 additional property, the 5% surcharge adds £15,000 to your standard SDLT of £5,000, totalling £20,000. A non-UK resident buying the same additional property would pay a further £6,000 (2%), totalling £26,000. Use our calculator for exact figures.