Stamp Duty Surcharge: The 5% on Second Homes Explained
If you are buying a property that is not your only home, you will usually pay a stamp duty surcharge on top of the normal rates. In England and Northern Ireland that surcharge is 5%, and it can add many thousands of pounds to the bill. This guide explains who pays it, how it is worked out, when it does not apply, and how to claim it back if you are replacing your main home.
At a glance
- Surcharge rate
- 5% on top of standard SDLT
- Applies from
- Purchases over £40,000
- Charged on
- The whole price, band by band
- Refundable
- If you sell your old main home within 3 years
Key takeaways
- The surcharge is 5% on top of the standard stamp duty rates, and it applies to the whole purchase price band by band, not just the top slice.
- It applies to additional properties, including buy-to-lets, holiday homes and second homes, and even to a new main home bought before you have sold the old one.
- It was raised from 3% to 5% in the Autumn Budget 2024, effective 31 October 2024.
- You can reclaim it if the property is replacing your main residence and you sell the previous one within 36 months.
What is the stamp duty surcharge?
The surcharge, known formally as the "higher rates for additional dwellings", is an extra layer of Stamp Duty Land Tax (SDLT) charged when you buy a residential property that is not your only home. It sits on top of the standard rates, adding 5 percentage points to every band.
It was introduced in 2016 at 3%, and increased to 5% from 31 October 2024. It applies in England and Northern Ireland. Scotland and Wales have their own equivalents under LBTT and LTT.
Who pays the surcharge?
You will usually pay the surcharge if, at the end of the purchase, you own more than one residential property and are not simply replacing your main home. Common situations include:
- Buying a buy-to-let property.
- Buying a holiday home or second home.
- Buying your next main home before selling your current one (though this part is reclaimable, see below).
- Helping a child buy where you will be a named owner.
It applies to purchases of £40,000 or more. Below that, the surcharge does not apply.
How much is the surcharge?
The surcharge adds 5% to each standard band. Take a £300,000 second home, using 2026/27 rates:
| Portion of price | Standard rate | With 5% surcharge |
|---|---|---|
| £0 to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £300,000 | 5% | 10% |
That works out at £20,000 on the second home, compared with just £5,000 for a standard buyer on the same property. The surcharge alone accounts for £15,000 of the difference.
Work out the figure for any price below, choosing "additional property" as your buyer type:
Stamp Duty calculator
England & Northern Ireland · 2025/26 rates
Can you get the surcharge refunded?
Yes, in one important case. If you buy your new main home before you have sold your old one, you pay the surcharge upfront, but you can reclaim it if you sell your previous main residence within 36 months. You claim the refund from HMRC, usually within 12 months of the sale.
This is the situation many ordinary movers find themselves in through no fault of their own, when chains slip and completions do not line up. The surcharge is not meant to catch them permanently, which is why the refund exists. Keep the paperwork and diarise the deadline.
When the surcharge does not apply
You generally will not pay the surcharge if:
- You are replacing your only or main residence and the sale and purchase complete on the same day.
- The property costs under £40,000.
- It is a caravan, houseboat or mobile home.
- You are buying a share in a property you already partly own in some limited cases.
The rules have plenty of edge cases, so if your situation is unusual it is worth taking advice from a conveyancer or tax adviser before you complete.
Frequently asked questions
Is the stamp duty surcharge 3% or 5%?
It is 5%, since 31 October 2024. It was 3% before that.
Does the surcharge apply to first-time buyers?
No. First-time buyers buying their only home get relief, not a surcharge. The surcharge is specifically for additional properties.
Do I pay the surcharge if I am buying before selling?
Yes, upfront, but you can reclaim it if you sell your previous main home within 36 months.
Buying a second home or a buy-to-let? Work out your full bill with the stamp duty calculator, and read our detailed guide to second home stamp duty for more on the reliefs and exceptions.
