Second home and buy-to-let stamp duty 2025/26

Any residential property you own (in the UK or anywhere else in the world) other than the one being bought as your main home. Buy-to-let purchases, second homes, holiday cottages, and properties bought through a company all trigger the surcharge. Inherited shares of property count, even small ones (the threshold is a market value of £40,000). The relevant test is what you own on completion day of the new purchase.

In England and NI the SDLT surcharge is 5% on top of the standard rates (raised from 3% in October 2024). In Scotland the Additional Dwelling Supplement (ADS) is 8% (raised from 6% in December 2024). In Wales the higher residential rates apply, which is roughly +5% across the bands. On a £300,000 purchase the additional bill (above the standard bill) is £15,000 in England, £24,000 in Scotland and £15,450 in Wales.

Only if you complete on the new home before selling the old one. If sales happen on the same day, no surcharge is due. If you complete on the new home first (a brief overlap of ownership), you pay the surcharge upfront and claim it back once the old home sells. The refund window is 36 months from the date of the new purchase in England and NI, and 18 months in Scotland (recently extended from 18 months). Wales also allows the refund route within 36 months.

In England and NI, file a refund application via HMRC's online service or by post. You need the SDLT reference, the completion dates of both purchases, and proof the previous home was your main residence. The refund is paid within 15 working days in most cases. In Scotland the equivalent is filed with Revenue Scotland. In Wales it's the Welsh Revenue Authority. All three accept claims up to the deadline (36 months in England/NI/Wales, 18 months in Scotland).

No. Purely commercial property is taxed under non-residential SDLT/LBTT/LTT rates which are lower and have no surcharge. Mixed-use property (residential and commercial together, like a shop with a flat above) is normally taxed under the non-residential rates, which can substantially reduce the bill on small additional purchases. The line between residential and mixed-use is technical and HMRC has been challenging aggressive mixed-use claims; take advice on borderline cases.

It still counts. Any residential property you own anywhere in the world above £40,000 in value triggers the surcharge on a UK purchase. The rule does not care whether you ever lived in the overseas property or whether you receive rent from it. Selling a foreign property to dodge the surcharge is treated the same as selling a UK one; the timing rules apply equally.

No. Married couples and civil partners are treated as a single unit for the surcharge. If either spouse owns another residential property, both are deemed to own it. Buying in one spouse's sole name does not change the analysis. Unmarried partners are treated separately, which creates an opening that some couples use deliberately, though doing so for tax reasons creates other risks (joint mortgage rights, inheritance issues, etc.).

Limited company purchases pay the surcharge from £1 (no minimum threshold). They also pay an additional 17% Annual Tax on Enveloped Dwellings (ATED) if the property is worth over £500,000 and is occupied by anyone connected to the company. Buy-to-let through a company is a substantial topic in its own right; the headline is that the surcharge always applies and the bill is meaningfully higher than for an individual purchase.

On 31 October 2024 (Budget day). The change was effective immediately for transactions completing on or after that date. Buyers with contracts already exchanged but not completed had no transitional relief and paid the higher rate unless they could complete within the same day. The previous 3% rate had been in place since April 2016.