Higher Rates for Additional Dwellings
The higher rates are an extra layer of SDLT charged when you buy an additional residential property in England or Northern Ireland. From 1 April 2025, they add 5 percentage points to each standard rate band, reaching up to 17%.
Last verified: April 2026 | Source: GOV.UK (updated 1 April 2025)
Key Takeaways
- •Applies when buying additional residential property worth £40,000 or more in England or Northern Ireland.
- •From 1 April 2025, rates run from 5% to 17% (standard rates plus 5% on each band).
- •Rules apply to married couples and civil partners as a unit — if either triggers higher rates, both pay them.
- •Refund available if you sell your previous main home within 3 years of the new purchase.
- •Companies must always pay higher rates for residential properties of £40,000 or more.
In this article
Definition
The higher rates for additional dwellings (sometimes abbreviated as HRAD) are a surcharge on top of standard SDLT rates. They apply when buying a residential property that will mean you own more than one residential property worth £40,000 or more anywhere in the world.
Scotland has its own equivalent called the Additional Dwelling Supplement (ADS) at 8%. Wales applies separate higher residential rates for additional properties.
Who Has to Pay
You must pay the higher rates if, at the end of the day you complete your purchase, you own more than one residential property worth £40,000 or more — including property owned anywhere in the world.
Married couples and civil partners are treated as one unit. If either spouse would individually trigger the higher rates, the higher rates apply to the whole transaction — even if the buying spouse would not trigger them alone.
Current Higher Rates (from 1 April 2025)
| Property value | Higher rate |
|---|---|
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5 million | 15% |
| Above £1.5 million | 17% |
Worked example: £300,000 additional property
- 5% on first £125,000 = £6,250
- 7% on next £125,000 = £8,750
- 10% on final £50,000 = £5,000
- Total SDLT: £20,000
When Higher Rates Do Not Apply
The higher rates do not apply to:
- •Property worth less than £40,000
- •Mixed-use (residential and commercial) property
- •Moveable properties (caravans, houseboats, mobile homes)
- •Replacing your main residence where your previous home sold within 36 months
- •Transfers between spouses or civil partners with no other parties involved
Claiming a Refund
If you paid higher rates because you owned your previous main home at completion but then sold it within 3 years, you can claim a refund of the higher rate portion.
The refund must be claimed within 12 months of the sale of your previous main home. Apply via HMRC using form SDLT.
Companies and Trusts
Companies must pay higher rates on any residential property purchase worth £40,000 or more — regardless of how many properties they already own. For properties worth more than £500,000, the 17% corporate body rate may apply instead.
Official Government Source
For the official higher rates guidance (last updated 1 April 2025), see HMRC:
Higher Rates of Stamp Duty Land Tax — GOV.UKFrequently Asked Questions
What are the higher rates for additional dwellings?
The higher rates are an extra layer of SDLT charged when buying an additional residential property worth £40,000 or more in England or Northern Ireland. From 1 April 2025, rates start at 5% and rise to 17%.
Who has to pay the higher rates?
You must pay the higher rates if, after buying the property, you will own more than one residential property worth £40,000 or more anywhere in the world. The rules apply to married couples and civil partners as a unit.
Can I get a refund of the higher rates?
Yes. If you sell your previous main residence within 3 years of completing your new purchase, you can apply for a refund. The refund must be claimed within 12 months of the sale of your previous main home.
In this article
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 Calculate My Stamp Duty UK to help buyers understand the complex world of property transaction taxes.