Holiday Home Stamp Duty
A holiday home is residential property, so you pay stamp duty at the standard residential rates, and in almost all cases the 5% additional property surcharge on top. See the rules, worked examples, and how Scotland and Wales differ.
In this article
Key Takeaways
- A holiday home is residential property, so you pay stamp duty at the standard residential rates on the purchase price
- In almost all cases a holiday home is an additional dwelling, so the 5% surcharge is added on top in England and Northern Ireland, from the first £40,000
- The 'replacing your main residence' exception does not apply to a holiday home, so the surcharge cannot be reclaimed later
- First-time buyer relief is never available on a holiday home
- Scotland charges 8% Additional Dwelling Supplement and Wales charges separate higher residential rates on additional properties
- Abolishing the furnished holiday lettings (FHL) regime from April 2025 changed income tax and capital gains tax, not stamp duty
Do You Pay Stamp Duty on a Holiday Home?
Yes. A holiday home is a dwelling, so it is residential property for stamp duty and you pay Stamp Duty Land Tax (SDLT) at the standard residential rates on the purchase price. Because most people buying a holiday home already own a main residence, the holiday home is an additional dwelling, which adds the 5% surcharge on top of the standard rates in England and Northern Ireland, from the first £40,000 of the price.
On a £300,000 holiday home bought by someone who already owns a home, the tax is £5,000 of standard SDLT plus a £15,000 surcharge, or £20,000 in total. Enter your own price in our second home stamp duty calculator for the exact figure.
Holiday Homes Use Residential Rates
A holiday cottage, seaside flat, lakeside lodge, or country retreat is a building suitable for use as a dwelling, so it is taxed as residential property, not as a commercial or mixed-use purchase. The standard residential SDLT bands for England and Northern Ireland apply to the price:
- 0% up to £125,000
- 2% on the portion from £125,001 to £250,000
- 5% on the portion from £250,001 to £925,000
- 10% on the portion from £925,001 to £1.5 million
- 12% on the portion above £1.5 million
Holiday parks and multiple units
A single holiday home is residential. Buying six or more dwellings in one transaction (for example a block of holiday lodges) can instead be treated as non-residential, and a genuinely mixed-use purchase uses the non-residential rates. See our commercial property guide if you are buying at that scale.
The 5% Additional Property Surcharge
The additional property surcharge is the single biggest factor in a holiday home tax bill. It applies whenever you will own two or more residential properties at the end of the day the purchase completes, and a holiday home bought alongside your existing main residence meets that test. The surcharge is 5% on top of every standard band, and it starts once the price reaches £40,000.
You cannot reclaim the surcharge on a holiday home
The surcharge can be refunded only when you are replacing your main residence and sell your old home within 36 months. A holiday home is not replacing your main residence, so the surcharge is a permanent cost, not a refundable one. See our replacement main residence rules for how that refund actually works.
Married couples and civil partners are treated as a single unit, so a holiday home bought in one spouse's sole name still counts as an additional property if the couple owns a main home. Check your exact position with our surcharge risk checker or read the £40,000 threshold explained.
Worked Examples by Price
The table shows the England and Northern Ireland SDLT on a holiday home at common prices, both for the rare case where it is your only property (standard rates) and the usual case where you already own a home (with the 5% surcharge).
| Holiday Home Price | Standard SDLT | With 5% Surcharge |
|---|---|---|
| £200,000 | £1,500 | £11,500 |
| £300,000 | £5,000 | £20,000 |
| £400,000 | £10,000 | £30,000 |
| £500,000 | £15,000 | £40,000 |
For a full breakdown at every price point, see stamp duty by property price.
Buying soon? Get your stamp duty checked before you commit
A specialist can confirm the right figure and flag any reliefs you qualify for.
No First-Time Buyer Relief
First-time buyer relief is not available on a holiday home. The relief requires that you intend to occupy the property as your only or main residence, which a holiday home by definition is not. In practice the question rarely arises, because anyone who already owns a property is not a first-time buyer in the first place. If you are genuinely buying your very first property and it will be your main home rather than a holiday let, use our first-time buyer calculator instead.
Holiday Homes in Scotland and Wales
Stamp duty is devolved, so a holiday home in Scotland or Wales follows different rules and a different surcharge:
- Scotland (LBTT): residential Land and Buildings Transaction Tax applies, plus the Additional Dwelling Supplement of 8% on the full price. Estimate it with our Scotland LBTT calculator.
- Wales (LTT): Land Transaction Tax applies, with a separate set of higher residential rate bands for additional properties rather than a flat surcharge. Use our Wales LTT calculator.
Furnished Holiday Lettings vs Stamp Duty
The furnished holiday lettings (FHL) tax regime was abolished from 6 April 2025. This is a common source of confusion, so it is worth being precise: the change affects income tax and capital gains tax (mortgage interest relief, capital allowances, and CGT reliefs for people who let a property as an FHL), not stamp duty.
What this means for your purchase
For SDLT, a holiday home is, and remains, residential property taxed at residential rates with the additional dwelling surcharge where it applies. Whether you let it out commercially, use it yourself, or a mix of both, the stamp duty on the purchase is the same. For the income and capital gains side of holiday lets, see our holiday let tax guide.
Common Questions
Do you pay stamp duty on a holiday home?
Yes. A holiday home is residential property, so you pay stamp duty at the standard residential rates on the purchase price. If you already own another home, the 5% additional property surcharge is added on top in England and Northern Ireland, from the first £40,000 of the price.
Does the second home surcharge apply to a holiday home?
Almost always. The surcharge applies whenever you will own two or more residential properties after the purchase completes. Because a holiday home is bought alongside an existing main residence, it meets that test and the 5% surcharge applies.
Can I reclaim the surcharge on a holiday home?
No. The surcharge refund only exists when you replace your main residence and sell your previous main home within 36 months. A holiday home does not replace your main residence, so the surcharge is a permanent cost.
Can I claim first-time buyer relief on a holiday home?
No. First-time buyer relief requires you to occupy the property as your only or main residence, which a holiday home is not. Anyone who already owns a property is not a first-time buyer in any case.
Did abolishing furnished holiday lettings change the stamp duty?
No. The abolition of the furnished holiday lettings regime from April 2025 affects income tax and capital gains tax, not stamp duty. A holiday home is still residential property for SDLT, taxed at residential rates with the surcharge where it applies.
Reviewed by
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.