Second home stamp duty and the higher rates for additional homes

The higher rates usually apply when, at the end of the day of purchase, the buyer owns more than one residential property worth £40,000 or more and is not replacing a main residence (GOV.UK, accessed 20 Oct 2026). They apply to second homes, buy-to-let purchases and homes bought for family members.

Married couples and civil partners are treated as one unit, so a property owned by either of them counts. A home owned anywhere in the world, or a share of one, also counts towards the total.

The surcharge is 5% on top of each standard band, so the first £125,000 is taxed at 5% instead of zero, the next slice at 7% and so on (GOV.UK, accessed 20 Oct 2026). The surcharge rose from 3% to 5% for purchases completing on or after 31 October 2024.

The second home stamp duty calculator applies the surcharge to every band for a price entered by the user, alongside the standard rates for comparison.

Worked example, using example figures, not market data: a second home bought for £300,000 pays 5% on the first £125,000, 7% on the next £125,000 and 10% on the final £50,000. That is £6,250, £8,750 and £5,000, a total of £20,000, compared with £5,000 at the standard rates.

The difference is the surcharge on the whole price. Higher rates also apply to some purchases by companies, whatever else they own.

Buyers replacing their main residence do not pay the higher rates if the previous main home is sold on or before the day the new one is bought. If the old home is sold within 36 months after the purchase, the surcharge is paid at completion and can then be reclaimed (GOV.UK, accessed 20 Oct 2026).

Both homes must have been the buyer's only or main residence at some point. Moving into a home that was previously let can still count, depending on the facts.

A refund of the higher rates can be claimed within 12 months of selling the previous main home, or within 12 months of the filing date of the new purchase's return, whichever is later (GOV.UK, accessed 20 Oct 2026). The claim is made online or by post, using the details of both transactions.

Refunds are covered in more detail, including other routes to reclaiming stamp duty, in the guide to stamp duty refunds.

Some cases are treated differently. Buying a home for a child, inheriting a share in a property, separation and divorce, trusts and buying through a company each have their own rules, and a share of an inherited home can count for a period after the death. Annexes and granny flats bought with a main home can sometimes be exempt.

Because the outcome depends on the details, a conveyancer or tax adviser can confirm whether the higher rates apply before exchange.