HomeBuyingCosts Guide
Second-Home Stamp Duty Surcharge
Written and reviewed by James Whitfield · Updated 2026-02-17 · 6 min read
Checked against 2026/27 HMRC, Revenue Scotland & HM Land Registry rates · Editorial standards · Methodology
Model surcharge outcomes early so your offer strategy reflects real completion cash, not just mortgage affordability.
Key takeaways
- 5% surcharge on the full price of an additional property.3
- On £400,000 that's £20,000 extra; on £250,000, £12,500.3
- Buying before you sell your old home? You pay it, then reclaim within 36 months.3
- Even a part-share of another property can trigger it.3
- Scotland charges 8% (ADS); Wales has its own higher rates.45
If you'll own more than one residential property at the end of the day you complete, you pay a 5% stamp duty surcharge on top of the standard rates — on the whole price, from the first pound.3 On a £400,000 second home that's an extra £20,000, taking the bill from £10,000 to £30,000.
When the surcharge bites, how it's calculated, the replacement-home exemption and 36-month refund, and the traps — inherited shares, buying before selling, and overseas property.
Worked examples — home mover typical fees
| Price | England/NI tax | Scotland tax | Wales tax |
|---|---|---|---|
| £300,000 | £5,000 | £4,600 | £4,500 |
| £500,000 | £15,000 | £23,350 | £18,000 |
| £750,000 | £27,500 | £48,350 | £36,750 |
What the surcharge adds
The surcharge is a flat 5% of the entire purchase price, stacked on top of whatever standard SDLT you'd owe. It doesn't replace the normal bands — it's added to them:
| Price | Standard SDLT | + 5% surcharge | Total for a second home |
|---|---|---|---|
| £250,000 | £2,500 | £12,500 | £15,000 |
| £400,000 | £10,000 | £20,000 | £30,000 |
| £500,000 | £15,000 | £25,000 | £40,000 |
| £750,000 | £27,500 | £37,500 | £65,000 |
The surcharge is 5% of the whole price, so it grows fast — £12,500 on £250,000, £37,500 on £750,000.3
When it applies (and when it doesn't)
The test is simple to state, fiddly in practice: at the end of the day you complete, will you own two or more residential properties, and is this one not a replacement of your main home?
It catches buy-to-lets, holiday homes, and second homes — but also the accidental cases: keeping your old flat as a rental, helping a child buy while you still own, or inheriting a share of a property before you complete.3
It does not apply if you're simply replacing your only or main residence — selling one home and buying another on the same day. The problem is timing.
Buying before you sell — the refund route
If you complete on the new home before your old one sells, HMRC treats you as owning two properties that day, so you pay the surcharge upfront. You then reclaim it once the old home sells, provided that happens within 36 months.3
This is real cash you have to find first. On a £500,000 purchase that's £25,000 tied up until the sale completes and the refund clears. Budget for it as money you'll get back, not money you never spend.
Claim the refund through HMRC within 12 months of selling the old home (or of the return, whichever is later). Your conveyancer can handle it.
Scotland and Wales are different
Scotland's Additional Dwelling Supplement (ADS) is 8%, not 5%, and applies to LBTT purchases over £40,000.4 Wales applies higher LTT rates to additional properties rather than a single flat surcharge.5
If you're buying an additional property across the border, don't assume the English 5% — the Scottish number in particular is materially higher.
Use the calculator for this topic
Frequently asked questions
How much is the second-home stamp duty surcharge?+
5% of the whole purchase price, added on top of standard SDLT, in England and Northern Ireland.3
Do I pay the surcharge if I'm buying before selling my current home?+
Yes, upfront, because you own two properties on completion day. You can reclaim it if you sell the old home within 36 months.3
Does an inherited share count?+
It can. Owning a share of another residential property at completion can trigger the surcharge, subject to some low-value and timing exceptions.3
Can I get the surcharge back?+
Yes, if you were replacing your main home and sell the previous one within 36 months. Claim through HMRC within 12 months of the sale.3
Is the surcharge the same in Scotland and Wales?+
No. Scotland's ADS is 8% on purchases over £40,000; Wales uses its own higher LTT rates.45
Does it apply to a property I own abroad?+
Yes — worldwide property counts when deciding whether you'll own more than one home.3
Sources & references
OfficialThe figures and rules on this page are drawn from the official UK government sources below. Rates are the confirmed 2026/27 amounts. Each link opens the relevant official page in a new tab.
- GOV.UK — SDLT residential property rates www.gov.uk/stamp-duty-land-tax/residential-property-rates Current band-by-band residential SDLT rates for 2026/27.
- GOV.UK — First-time buyers' SDLT relief www.gov.uk/stamp-duty-land-tax/residential-property-rates#first-time-buyers Relief: nil-rate to £300,000, 5% to £500,000, none above £500,000.
- GOV.UK — Higher rates for additional properties www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property The 5% additional-property surcharge and 36-month refund rules.
- Revenue Scotland — Land and Buildings Transaction Tax revenue.scot/taxes/land-buildings-transaction-tax Scottish LBTT residential rates and the Additional Dwelling Supplement.
- Welsh Revenue Authority — Land Transaction Tax rates www.gov.wales/land-transaction-tax-rates-and-bands Welsh LTT residential rates and bands.
- GOV.UK — Pay Stamp Duty Land Tax www.gov.uk/pay-stamp-duty-land-tax Filing the SDLT return and paying within 14 days of completion.
Verified against published UK government guidance. See also Methodology and Editorial standards.
Related guides
Written and reviewed by James Whitfield and the HomeBuyingCosts editorial team.
Stamp duty, LBTT and LTT figures are checked against GOV.UK, Revenue Scotland and GOV.WALES. We explain every cost of buying a home in plain English, with worked examples. Editorial standards · About us