Holiday Let Stamp Duty Calculator 2026
Calculate stamp duty on holiday let purchases across England, Scotland, and Wales, including the additional property surcharge
In this article
Calculate Holiday Let Stamp Duty
Maximum: £25,000,000
Holiday lets are typically classed as additional properties and incur a surcharge
Key Tax Considerations for Holiday Lets Post-FHL Abolition
The Furnished Holiday Lettings (FHL) tax regime was abolished in April 2025. Holiday lets are now treated the same as standard buy-to-let properties for income tax purposes, meaning restricted mortgage interest relief (Section 24) and no capital allowances for furnishings.
Total SDLT
£20,000
Effective rate: 6.67%
Includes 5% additional property surcharge: £15,000
| Band | Rate | Tax |
|---|---|---|
| £0 - £125,000 | 0.05% | £6,250 |
| £125,000 - £250,000 | 0.07% | £8,750 |
| £250,000 - £300,000 | 0.1% | £5,000 |
| Total SDLT | £20,000 | |
Disclaimer: This calculator provides estimates based on current stamp duty rates as of February 2026. Holiday let purchases are typically subject to additional property surcharges. Tax treatment varies by region (SDLT in England, LBTT in Scotland, LTT in Wales). This tool is for informational purposes only and does not constitute financial or legal advice. Consult a qualified tax advisor or solicitor for advice specific to your circumstances.
Holiday Let vs Buy-to-Let SDLT
Both holiday lets and traditional buy-to-let properties are subject to the same stamp duty rates, including the additional property surcharge. Use our stamp duty calculator to estimate your costs. This means:
- •England: 5% surcharge applies to the entire purchase price
- •Scotland: 8% Additional Dwelling Supplement (ADS) applies
- •Wales: Higher rates apply via separate band structure (starting at 5%)
However, the income tax treatment has changed significantly. Following the abolition of the Furnished Holiday Lettings (FHL) regime in April 2025, holiday lets now face the same tax treatment as standard buy-to-let properties for income tax purposes.
Key Difference
While stamp duty treatment is identical, holiday lets may still qualify for business rates relief instead of council tax if let for 140+ days/year, potentially offering significant savings (see Business Rates section below).
FHL Regime Abolished April 2025
The Furnished Holiday Lettings tax regime was abolished on 6 April 2025, fundamentally changing the tax landscape for holiday let operators. See our holiday let tax guide for full implications. Here's what changed:
What You Lost
- ✗Capital Allowances: No longer able to claim capital allowances on furniture, furnishings, and equipment (previously up to 100% first-year allowances)
- ✗Mortgage Interest Relief: Now subject to Section 24 restrictions, limiting relief to basic rate (20%) instead of full marginal rate
- ✗CGT Business Asset Disposal Relief: No longer eligible for 10% CGT rate on disposal (now standard residential CGT rates of 18%/24%)
- ✗Pension Contributions: Income from holiday lets no longer counts as "relevant earnings" for pension relief purposes
What Remains
- ✓Standard rental expense deductions (repairs, maintenance, utilities)
- ✓Ability to deduct finance costs as a basic rate tax credit
- ✓Potential business rates relief (see next section)
Business Rates vs Council Tax
One key advantage that remains for holiday lets is the ability to pay business rates instead of council tax. This can result in significant savings:
Small Business Rates Relief
Properties with a rateable value below £12,000 qualify for 100% business rates relief in England, effectively paying zero business rates.
Properties with rateable values between £12,000-£15,000 may qualify for partial relief (tapered from 100% down to 0%).
Eligibility Requirements
To switch from council tax to business rates, your holiday let must be:
- •Available for letting commercially for at least 140 days per year
- •Actually let for at least 70 days per year (in some areas)
- •Not occupied by the owner for more than 28 days per year
Important Note
Rules vary between England, Scotland, and Wales. Some councils are tightening enforcement, requiring evidence of actual lettings. Check with your local Valuation Office Agency or equivalent authority.
Worked Examples by Region
Example 1: £250,000 Cottage in Wales
Purchasing a holiday cottage in Pembrokeshire for £250,000 as an additional property:
| £0 - £180,000 | @ 5% | £9,000 |
| £180,001 - £250,000 | @ 8.5% | £5,950 |
| Total LTT | £14,950 | |
Effective rate: 5.98%
Example 2: £400,000 Property in England
Coastal holiday let in Cornwall purchased for £400,000 as an additional property:
| £0 - £125,000 | @ 5% | £6,250 |
| £125,001 - £250,000 | @ 7% | £8,750 |
| £250,001 - £400,000 | @ 10% | £15,000 |
| Total SDLT | £30,000 | |
Effective rate: 7.5% • Includes 5% surcharge: £20,000 (standard SDLT: £10,000)
Example 3: £350,000 Property in Scotland
Holiday lodge in the Highlands for £350,000 as an additional property:
| £0 - £145,000 | @ 0% | £0 |
| £145,000 - £250,000 | @ 2% | £2,100 |
| £250,000 - £350,000 | @ 5% | £5,000 |
| Additional Dwelling Supplement (8%) | £28,000 | |
| Total LBTT | £35,100 | |
Effective rate: 10.03%
Airbnb & Short-Term Let Considerations
If you're planning to operate your holiday let through platforms like Airbnb, Vrbo, or Booking.com, be aware of additional regulatory requirements. Review our landlord guide for business obligations:
London 90-Day Rule
In Greater London, properties can only be let as short-term accommodation for a maximum of 90 days per calendar year without planning permission. Exceeding this requires formal planning consent, which can be difficult to obtain in residential areas.
Local Authority Licensing
Many councils now require short-term let operators to obtain a license. Requirements vary but typically include:
- •Safety certificates (gas, electrical, fire)
- •Adequate insurance coverage
- •Complaints procedure and management arrangements
- •Registration with local tourism bodies (in some areas)
Insurance Requirements
Standard home insurance policies typically exclude short-term letting. You'll need:
- •Public liability insurance (minimum £2-5 million cover recommended)
- •Buildings and contents insurance appropriate for short-term letting
- •Loss of income protection
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Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.