Second Home Stamp Duty Calculator
Calculate stamp duty on additional properties including the 5% surcharge. Updated for January 2026.
Your Results
Stamp Duty to Pay
£20,000
Effective tax rate: 6.67%
Tax Breakdown
| Band | Rate | Tax |
|---|---|---|
| £0 - £125,000 | 5% | £6,250 |
| £125,001 - £250,000 | 7% | £8,750 |
| £250,001 - £300,000 | 10% | £5,000 |
| Additional Property | +5% | +£15,000 |
| Total | £20,000 | |
£0 - £125,000
5%
£6,250
£125,001 - £250,000
7%
£8,750
£250,001 - £300,000
10%
£5,000
Additional Property
+5%
+£15,000
Total
£20,000
Tax by Band
Added to 25-Year Mortgage
£117/month
Based on 5% interest rate, added to loan amount
Understanding the 5% Surcharge
What is it?
Since April 2025, if you buy an additional property (second home, holiday home, or buy-to-let), you pay an extra 5% on top of the standard stamp duty rates. This applies to the entire purchase price.
When does it apply?
The surcharge applies when you already own another residential property anywhere in the world at the end of the day of purchase, and the new property costs £40,000 or more.
How Much Extra Will You Pay?
| Property Price | Standard SDLT | 5% Surcharge | Total to Pay |
|---|---|---|---|
| £200,000 | £1,500 | +£10,000 | £11,500 |
| £300,000 | £5,000 | +£15,000 | £20,000 |
| £500,000 | £15,000 | +£25,000 | £40,000 |
| £750,000 | £27,500 | +£37,500 | £65,000 |
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Can You Get a Refund?
Yes, you may be entitled to a refund if:
- 1.You sell your previous main residence within 36 months of buying the new property
- 2.The new property becomes (or was intended to become) your main residence
How to claim: You must claim the refund within 12 months of selling your previous home (or within 12 months of the filing date for the original return, if later). See our complete stamp duty refund guide for full details.
Common Scenarios
Surcharge DOES apply if:
- •You're buying a holiday home while keeping your main residence
- •You're buying a buy-to-let investment property
- •You haven't sold your old home before completing on the new one
- •You own property abroad worth over £40,000
Surcharge does NOT apply if:
- •You're replacing your main residence (sold before purchase) - read our second home guide or our second home surcharge FAQ
- •Property is worth less than £40,000
- •You only own a share of another property (less than major interest)
- •You're buying a caravan, mobile home, or houseboat
What Counts as a "Second Home" for Stamp Duty?
HMRC defines a second home broadly for stamp duty purposes. Any residential property you purchase while already owning another residential property triggers the 5% surcharge. This includes:
- •Holiday homes: A cottage in Cornwall, a flat in Edinburgh, or any property used for holidays while you retain your main residence
- •Buy-to-let investments: Properties purchased to rent out, regardless of whether they are your first rental property
- •Properties abroad: If you own residential property anywhere in the world (even if inherited), it counts as existing ownership
- •Properties held in trust: Beneficial interests in residential property held through trusts may also trigger the surcharge
Notable exceptions: caravans, mobile homes, and houseboats are not classified as dwellings for SDLT purposes. Properties valued under £40,000 are also exempt from the surcharge.
Replacement Main Residence Exemption
The most common way to avoid the surcharge permanently is through the replacement main residence exemption. If you sell your current main home before completing on the new one, the surcharge does not apply at all. However, property chains rarely align perfectly, so many buyers pay the surcharge upfront and then reclaim it.
If you buy your new main residence before selling the old one, you pay the 5% surcharge at completion but can apply for a full refund once you sell within 36 months. The refund claim must be made within 12 months of the sale of the previous property or within 12 months of the filing date for the SDLT return, whichever is later.
Common trap: If your sale falls through after you have already completed the purchase, the 36-month clock continues ticking from your purchase completion date. You must find another buyer and complete the sale within that period to qualify for the refund. It is not reset if a sale collapses.
Common Stamp Duty Traps for Second Home Buyers
Inherited Property
If you have inherited a share of a residential property worth more than £40,000, it counts as ownership of an additional dwelling. Buying a new property while holding this interest triggers the surcharge, even if you have never lived in the inherited property.
Separation and Divorce
If you still jointly own the matrimonial home and buy a new property, the surcharge applies. This can be a costly surprise for separating couples who have not yet completed a property settlement.
Gifted Properties
Properties gifted to you, including those transferred at nil value, count as ownership. If a family member has transferred a property into your name, this triggers the surcharge on any subsequent purchase.
Missed Refund Deadline
The 36-month window to sell your previous main residence and claim a refund is strictly enforced. A slow market, difficult tenants, or planning issues that delay the sale can result in permanently losing the refund.
Frequently Asked Questions
What is the second home stamp duty surcharge?
Since 31 October 2024, buyers purchasing an additional residential property such as a second home, holiday home, or buy-to-let pay a 5% surcharge on top of standard SDLT rates. The previous surcharge was 3%. This applies to the entire purchase price of properties over £40,000.
When does the 5% surcharge apply?
The surcharge applies when you already own another residential property anywhere in the world at the end of the day of purchase and the new property costs more than £40,000. This includes inherited properties, properties abroad, and properties held in trust worth over £40,000.
Can I get a refund on the second home surcharge?
Yes, if you are replacing your main residence you can claim a refund of the 5% surcharge. You must sell your previous main home within 36 months of buying the new one and the new property must become your main residence. The refund claim must be made within 12 months of the sale.
Does the surcharge apply if I am replacing my main home?
If you sell your current main home before completing on the new one, the surcharge does not apply at all. If timings overlap and you complete the purchase before selling, you pay the surcharge upfront but can reclaim it once the old property sells within 36 months.
What counts as owning another property for the surcharge?
Any residential property worth over £40,000 counts, including properties abroad, inherited properties, and properties held in trust. Minor interests under £40,000 in value are excluded. Caravans, mobile homes, and houseboats are not classified as dwellings for SDLT purposes.
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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.