Stamp duty guide
Stamp Duty on a Second Home 2025: Surcharge Rates and Calculator
Stamp Duty on a Second Home 2025 is higher than standard buyer tax because additional dwellings usually trigger higher rates or a supplement. The rules differ across England and Northern Ireland, Scotland and Wales, so a second-home calculator must ask where the property is located.
In short
Stamp duty on a second home in 2025 depends on jurisdiction. England and Northern Ireland use higher SDLT rates, Scotland adds the Additional Dwelling Supplement to LBTT, and Wales uses higher residential LTT rates. The charge usually applies when the buyer already owns a dwelling and is not replacing their main residence.
Second home SDLT / LBTT / LTT bands - UK
Administered by HMRC / Revenue Scotland / Welsh Revenue Authority.
| Band | Standard rate | Additional dwelling |
|---|---|---|
| England & NI | Higher SDLT rates | 5%, 7%, 10%, 15%, 17% by band |
| Scotland | LBTT + ADS | Standard LBTT plus 8% ADS on full price |
| Wales | Higher residential LTT | 5%, 8.5%, 10%, 12.5%, 15%, 17% by band |
Stamp Duty on a Second Home 2025: the direct answer
A second home, holiday home or buy-to-let usually pays more transaction tax when the buyer already owns another dwelling and is not replacing their main residence. England and Northern Ireland apply higher SDLT rates. Scotland applies LBTT plus ADS. Wales applies higher residential LTT rates. These figures are based on 2025 - 26 published rates. Always verify with HMRC, Revenue Scotland or the Welsh Revenue Authority.
| Jurisdiction | Additional dwelling method | Example at £300,000 |
|---|---|---|
| England & Northern Ireland | Higher SDLT rate bands | £20,000 |
| Scotland | Standard LBTT + 8% ADS | £28,600 |
| Wales | Higher residential LTT bands | £19,950 |
What counts as an additional dwelling?
The core test is whether the purchase leaves the buyer owning more than one residential property and whether the new property is replacing the buyer’s only or main residence. A second home, holiday home, investment flat or buy-to-let commonly counts. A company purchase is often treated as higher-rate even if the company owns no other property. Joint purchases can also be caught if one buyer already owns another dwelling.
| Scenario | Usually additional dwelling? | Reason |
|---|---|---|
| Buy-to-let while owning main home | Yes | Not replacing main residence |
| Holiday home purchase | Yes | Additional residential property |
| Selling old main home and buying new main home | Usually no | Replacement of main residence |
| Buying before old main home sells | Initially yes | Refund may be possible after sale |
Worked example: £300,000 second home in England & Northern Ireland
At £300,000, the current higher-rate SDLT calculation produces £20,000. This is much higher than the £5,000 standard SDLT bill because every band is increased for additional dwellings. Buyers often describe this as a surcharge, but the practical calculation is made through the higher-rate bands.
Worked example: £300,000 second home in Scotland
Scotland uses a supplement structure. First calculate standard LBTT, then add ADS to the full purchase price where due. At £300,000, standard LBTT is £4,600 and ADS at 8% is £24,000, giving a total of £28,600.
Worked example: £300,000 second home in Wales
Wales uses higher residential LTT bands rather than the English SDLT or Scottish ADS structure. At £300,000, the higher-rate LTT calculation is £19,950. This is the result of 5% on the first £180,000, 8.5% on the next £70,000 and 10% on the remaining £50,000.
Refunds when a main home is sold within 3 years
A refund may be available when a buyer pays higher rates because they bought a new main residence before selling the previous main residence, then sells the previous main residence within the relevant 36-month period. This is not automatic: conditions differ by jurisdiction, deadlines apply, and the property sold must usually have been the buyer’s previous main residence. Keep completion statements, sale evidence and solicitor correspondence.
| Jurisdiction | Common refund route | Key condition |
|---|---|---|
| England & NI | Higher-rate SDLT refund | Previous main residence sold within 36 months |
| Scotland | ADS repayment | Previous main residence sold and conditions met |
| Wales | Higher-rate LTT refund | Replacement main residence conditions met |
Exceptions and edge cases
Common edge cases include divorce or separation, inherited property, mixed-use purchases, property held in trust, company purchases, and very low-value additional properties. The headline rule is useful, but it is not enough for complex ownership structures. Inherited property may not create a transaction tax bill at the time of inheritance, but it can affect whether a later purchase counts as additional. Divorce and court orders can also alter the practical outcome.
| Edge case | Practical issue | What to do |
|---|---|---|
| Divorce or separation | Ownership may remain during transition | Get solicitor advice |
| Inherited property | May count for future purchases | Check ownership share and value |
| Company purchase | Often higher-rate | Model as additional unless advised otherwise |
| Replacing main residence | May avoid or refund higher rates | Document the sale and occupation history |
Buy-to-let context
Buy-to-let investors should calculate the second-home tax before assessing yield. The surcharge can materially reduce cash-on-cash returns, particularly at lower prices where the extra tax is a high proportion of the deposit. A £300,000 Scottish buy-to-let can have a £28,600 transaction tax bill before legal fees, mortgage fees, refurbishment and letting costs.
Calculate second-home SDLT, LBTT or LTT using the correct jurisdiction and buyer type.
Calculate Second Home Stamp Duty →Frequently Asked Questions
It depends on the jurisdiction. England and Northern Ireland use higher SDLT rates that are 5 percentage points above standard bands. Scotland applies LBTT plus ADS, currently 8% of the purchase price. Wales uses higher residential LTT bands.
An additional dwelling is normally a residential property bought when the buyer already owns another dwelling and is not replacing their only or main residence. Second homes, holiday homes and buy-to-let properties commonly fall into this category.
Using current higher SDLT rates, a £300,000 additional dwelling purchase in England or Northern Ireland produces £20,000 SDLT: 5% on £125,000, 7% on £125,000 and 10% on £50,000.
A £300,000 Scottish additional dwelling produces £28,600 using current rules: £4,600 standard LBTT plus £24,000 ADS at 8% of the purchase price.
A £300,000 Welsh additional dwelling produces £19,950 using current higher residential LTT rates: 5% on £180,000, 8.5% on £70,000 and 10% on £50,000.
Often yes. If you bought a new main residence before selling the old one, a refund may be available if the previous main residence is sold within the relevant 36-month period and other conditions are met.
Inheriting a property is not itself a normal purchase transaction, but inherited property can count as a dwelling you own when you later buy another property. The exact treatment depends on jurisdiction and ownership share.
Usually yes. A buy-to-let purchase is generally treated as an additional dwelling if the buyer already owns another residential property and is not replacing a main residence.
Related stamp duty pages
- UK stamp duty calculator
Calculate SDLT, LBTT or LTT by jurisdiction and buyer type.
- Stamp duty rates
Compare standard and additional dwelling rates.
- Stamp duty changes 2025
See how threshold changes affect tax planning.
- LBTT calculator Scotland
Calculate Scottish ADS examples.
- LTT calculator Wales
Calculate Welsh higher residential LTT.