If you are buying a second home, holiday home or buy-to-let property in England or Northern Ireland, you pay an additional 5% stamp duty surcharge on top of the standard rates. This surcharge increased from 3% to 5% in October 2024.
The surcharge applies to the entire property price, not just the amount above the threshold. This makes the additional cost significant.
Worked examples for a £300,000 property:
Home mover (standard rates): £5,000 Second home buyer: £5,000 standard SDLT plus £15,000 surcharge (5% of £300,000) = £20,000 total
For a £500,000 property:
Home mover: £12,500 Second home buyer: £12,500 plus £25,000 surcharge = £37,500 total
The surcharge applies if you already own another property anywhere in the world at the date of purchase. This includes properties owned by your spouse or civil partner, properties you own abroad, and inherited properties where you have a share of 50% or more.
You can claim a refund of the surcharge if you are replacing your main residence and sell your previous home within 36 months of buying the new one. This is common when there is a delay in selling your old house. You must apply for the refund within 12 months of selling the previous property, or within 12 months of the filing date for the new purchase, whichever is later.
The surcharge does not apply to properties under £40,000, caravans, mobile homes or houseboats, or properties acquired through inheritance where you do not already own another property.
Use our stamp duty calculator to see the exact cost for any property price with the additional property surcharge applied.