Stamp Duty On A Second Home
How Much Is Stamp Duty On A Second Home?.
Stamp Duty For Second Homes.
How Much Stamp Duty Do You Pay On A Second Home?
As of 31 October 2024, the additional property surcharge for second homes, buy-to-let properties, and investment purchases has increased from 3% to 5%, applying on top of standard SDLT rates
Current SDLT Rates (from 1 April 2025)
Here’s how the surcharge applies to each band, combining the standard rate + 5% surcharge:
| Property Value | Standard Rate | Additional Property Rate |
|---|---|---|
| £0-£500,000 | 0% | 5% |
| £500,000 – £925,000 | 2% | 7% |
| £250k to £925k | 5% | 10% |
| £925,000 – £1.5m | 10% | 15% |
| Over £1.5m | 12% | 17% |
Note:Non UK residents will pay a 2% surcharge from 1st April, 2021.
LBTT rates for a second home in Scotland.
If you’re buying an additional property in Scotland — such as a holiday home or a buy-to-let — you must pay the Additional Dwelling Supplement (ADS) at 8% of the total purchase price, on top of the normal LBTT. This applies to residential purchases over £40,000.
ADS generally does not apply to caravans, mobile homes or houseboats (these are not normally treated as “dwellings” unless permanently fixed to the land).
Government LBTT rates are banded and depend on the property price and your circumstances. The most straightforward calculation is for buyers replacing their only or main home (a single-property purchase). First-time buyers benefit from relief with no LBTT on the first £175,000 of the price; above that, normal residential bands apply.
|
|
| |||
|---|---|---|---|---|---|
| Up to £145,000 | 0% | 8% | |||
| £145,001 to £250,000 | 2% | 10% | |||
| £250,001 to £325,000 | 5% | 13% | |||
| £325,001 to £750,000 | 10% | 18% | |||
| Over £750,000 | 12% | 20% |
Stamp Duty On A Second Home In Wales.
If you’re purchasing an additional residential property in Wales — such as a holiday home or buy-to-let — you will pay higher Land Transaction Tax (LTT) rates, not the standard rates.
This higher LTT applies if:
The property costs £40,000 or more
You already own one or more other residential properties, anywhere in the world
The surcharge does not apply to:
Properties under £40,000
Caravans, mobile homes, houseboats, or mixed-use properties
|
|
|
|||
|---|---|---|---|---|---|
| Up to £180,000 | 0% | 5% | |||
| £180,001 to £250,000 | 0% | 8.5% | |||
| £250,001 to £400,000 | 5% | 10% | |||
| £400,001 to £750,000 | 7.5% | 12.5% | |||
| £750,001 to £1,500,000 | 7.5% | 15% | |||
| Over £1,500,000 | 12% | 17% |
Additional considerations when buying a second home
Spouses
Married couples, or civil partners, are classed as one unit by HMRC, so if one owns a main residence and the other buys an investment property, the stamp duty rates for a second property will still apply.Divorce
There are special rules in place for divorce. If Partner 1 moves out of the marital home and a ‘property adjustment order’ is in place to hand the home over to Partner 2, then the additional stamp duty rate does not apply.Buying A Property For Children
Whoever’s name is on the deeds owns the property. If that is yours (the parents) If your name is and you own another property, then the 3% extra stamp duty applies. There are a few ways you can avoid it:- Gift A Deposit
- Act As Guarantor
- Get A Family Offset Mortgage
Leasehold Extensions
Stamp Duty Rates on a second property might apply on leasehold extensions as Stamp duty applies to lease extensions as it does to any other property. The £125,000 threshold for standard stamp duty means most people don’t have to pay it though. Stamp duty for second homes starts at a much lower price of £40,000. Paying more for the extension whilst owning other properties means you’ll pay the extra stamp duty costs. If the lease extension is on your main residence you are exempt.Can I Claim A Stamp Duty Refund?
If you buy a second home and sell your previous main residence within three years then you can claim a refund.
If you sold your previous main residence on 29 October 2018 or later, HMRC must have your request for a refund within 12 months of the sale, or within 12 months of the filing date of the return relating to the new residence, whichever is later.
If you think you’ve paid the stamp duty on a second home by mistake then you can also apply for a refund.
