Who has to pay stamp duty on a second home?
With a few exceptions, anyone buying an additional residential property has to pay stamp duty.
On second homes bought in England and Northern Ireland, there’s a 5% surcharge on top of the basic stamp duty rate, while similar rules apply in Scotland and Wales (see below). The surcharge applies to any of the following:
A second, third or fourth home you own
A holiday home
A buy-to-let property
A home you own a share in, if your share is worth £40,000 or more
A property you buy in the UK, if your main home is abroad
A second home bought via a limited company
How much is stamp duty on a second home?
Second-property stamp duty rates are the same in England and Northern Ireland, but different if you’re buying a property in Scotland or Wales. You can find out more details by using our stamp duty calculator for guidance, which shows the split across each region.
England and Northern Ireland
The surcharge for additional properties rose to 5% as of 31 October 2024. It only applies when you buy a residential property (or a part of one) for £40,000 or more.
See the table below for the current rate of stamp duty for additional properties:
Stamp duty rates (1 April 2025 onwards)
Portion of property price | Standard stamp duty rate | Additional property stamp duty rate |
|---|---|---|
Up to £125,000 | 0% | 5% |
Portion between £125,001 & £250,000 | 2% | 7% |
Portion between £250,001 & £925,000 | 5% | 10% |
Portion between £925,001 & £1.5m | 10% | 15% |
Portion over £1.5m | 12% | 17% |
You pay the relevant rate for the portion of the property price in each band. For example, if you were to buy a freehold additional residential property worth £450,000 in England you would pay:
5% of the portion of the property price up to £125,000 = £6,250
7% on the second £125,000 = £8,750
10% on the remaining £200,000 = £20,000
Total SDLT due would be £35,000.
Scotland
Buyers of second homes in Scotland have to pay the Additional Dwelling Supplement (ADS) on top of the Land and Buildings Transaction Tax (LBTT). This is an extra 8% on the purchase price of properties over £40,000.
Please note that you pay the relevant rate for the portion of the property price in each band.
Property value | Land and Buildings Transaction Tax rate plus Additional Dwelling Supplement |
|---|---|
Up to £145,000 | 8% |
£145,001 – £250,000 | 10% |
£250,001 – £325,000 | 13% |
£325,001 – £750,000 | 18% |
Over £750,000 | 20% |
Wales
Buyers of second homes in Wales have to pay the higher residential rate of Land Transaction Tax (LTT) for properties over £40,000.
Please note that you pay the relevant rate for the portion of the property price in each band. Also note that the property value bands are different if you’re buying an additional property.
Property value | Standard LTT rate | Property value (of additional property) | Higher residential rate |
|---|---|---|---|
Up to £225,000 | 0% | Up to £180,000 | 5% |
£180,001 - £250,000 | 8.5% | ||
£225,001 - £400,000 | 6% | £250,001 - £400,000 | 10% |
£400,001 – £750,000 | 7.5% | £400,001 - £750,000 | 12.5% |
£750,001 – £1.5m | 10% | £750,001 - £1.5m | 15% |
£1.5m+ | 12% | £1.5m+ | 17% |
Are any homes exempt from stamp duty for second homes?
You won’t have to pay the additional stamp duty rate on:
Moveable dwellings like caravans, mobile homes or houseboats irrespective of how much you pay for them.
What if the home I’m buying will be my main residence?
If you’re intending to replace your main residence with the property you’re buying, you won’t have to pay the additional stamp duty rate. But you must have sold your existing home before you complete on your new home to avoid paying the higher rate.
If you haven’t sold your previous main residence by the day of completion on your new home, you’ll have to pay the second property tax. That’s because you now own two properties.
But the good news is that you can apply for a second-home stamp-duty refund if you sell your previous main home within 36 months. And that applies for the ADS payment in Scotland and the LTT higher rate in Wales too.
What if my partner already owns a home. Will I have to pay stamp duty?
The rules apply to both you and anyone you’re buying with. So if your partner already owns a home and they’re keeping it, then you’ll have to pay the higher rates if you buy another house together.
In what circumstances might stamp duty not be payable on a second home?
There are some situations in which stamp duty on a second home in the UK might not apply, although you should always be careful not to break the rules.
Stamp duty is not normally payable on properties that are inherited, although inheritance tax may still apply. You’ll have to pay additional stamp duty if you buy another residential property
You should be exempt if the property has been transferred following a divorce or separation after the end of a civil partnership
If your second home is worth less than £40,000 then there’ll be no stamp duty to pay. In Scotland, you won’t have to pay the ADS if your share in the property is less than £40,000
If you’re helping your children buy a home, you can gift the deposit. As long as you’re not the joint owner of the property, the second-home stamp-duty surcharge won’t apply – but make sure you understand how the seven-year rule can affect tax on gift-giving
Guarantors for a mortgage are not classed as property owners so will avoid the additional rate.
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