Surcharge Risk Checker
Will you pay the 5% additional dwelling surcharge? Answer a few questions about your property ownership to get an instant assessment.
Last verified: March 2026 · Rate: 5% (from April 2025)
Key Takeaways
- •The 5% additional dwelling surcharge applies when you own more than one residential property worth £40,000 or more after purchase.
- •Married couples are treated as one unit — your spouse's properties count as yours for surcharge purposes, even if not jointly owned.
- •If replacing your main home, you may pay and then claim a refund — but only if the old home sells within 36 months.
- •Inherited properties with less than 50% share inherited less than 3 years ago are excluded from the count.
- •The surcharge rate increased from 3% to 5% in April 2025.
In this article
How to Use This Tool
- 1Answer each Yes/No question honestly about your property situation.
- 2The tool follows the same branching rules HMRC applies — not everyone sees every question.
- 3Read the blue explanation box below each question if you are unsure what it is asking.
- 4View your result with an estimated surcharge amount and a link to the correct calculator.
- 5This tool provides guidance only and does not constitute legal or tax advice. Confirm with your solicitor.
Surcharge Risk Checker
Step 1 of 10After this purchase, will you own more than one residential property?
Count all residential properties you will own after completion, including any owned jointly or overseas.
Understanding Your Results
No Surcharge Risk
Standard residential SDLT rates apply. Use the main calculator to work out your bill.
Surcharge Applies — But May Be Refunded
You pay the 5% surcharge now but can reclaim it if you sell your previous main home within 36 months.
Surcharge Applies
The 5% additional dwelling surcharge applies. Budget accordingly — the extra cost can be substantial.
Seek Advice
Your situation has complexities this tool cannot fully resolve. A property tax specialist or solicitor can give a definitive answer.
5% Surcharge Rules Explained
The additional dwelling surcharge was introduced in April 2016 at 3%. It was raised to 5% in April 2025. The surcharge applies to every band of SDLT — it is not a flat charge on the whole price but an uplift to each rate band.
| Band | Standard Rate | With Surcharge |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 – £250,000 | 2% | 7% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 15% |
| Above £1,500,000 | 12% | 17% |
Example: For a £300,000 property, standard SDLT is £2,500. With the 5% surcharge, the bill rises to £17,500 — an extra £15,000. The surcharge applies at completion, not exchange.
Special Cases: Marriage, Inheritance, Children
Married Couples and Civil Partners
Married couples and civil partners are treated as one legal unit for surcharge purposes. If either partner owns or is buying a residential property, both partners are treated as owning it. This means you cannot avoid the surcharge by putting the new property solely in the non-owning partner's name.
There is one exception: couples who are permanently separated (with a court order or formal deed of separation) and living apart may be treated as separate individuals. Merely living apart without legal separation is not sufficient.
Inherited Property
An inherited property counts toward the additional dwelling surcharge unless both of the following apply: (1) you own less than 50% of the inherited property; and (2) you inherited it less than 3 years before the purchase date. If either condition is not met, the property counts and the surcharge may apply.
Children and Trusts
If a parent buys a property in a child's name (or through a trust where the parent is the beneficial owner), HMRC treats the parent as the owner for surcharge purposes. The legal title does not override the beneficial ownership test.
Overseas property: HMRC counts residential property anywhere in the world. An apartment in Spain, a villa in Portugal, or a house in Australia all count toward the additional dwelling threshold.
Example Scenarios
Scenario 1: BTL investor
Owns own home. Buying a buy-to-let property, keeping both.
Will own 2 properties ≥ £40,000. No replacement of main residence. 5% surcharge applies to full purchase price.
Scenario 2: Simultaneous exchange and completion
Selling current home Friday, buying new home the same Friday.
Sale and purchase complete simultaneously. Does not own two properties at any point. Surcharge does not apply.
Scenario 3: Selling later
Buying new home in June. Old home selling in September (3 months later).
Surcharge applies at purchase because two properties owned simultaneously. Old home sells within 36 months — full surcharge refunded.
Scenario 4: Inherited 40% share (1.5 years ago)
Inherited 40% of parent's home 18 months ago. Buying first own home.
Share < 50% and inherited < 3 years ago. Exclusion applies. Surcharge does not apply.
Scenario 5: Spouse's property
Married. Wife owns a flat in her sole name from before marriage. Buying new home jointly.
Married couple treated as one unit. Wife's flat counts as the husband's. Will own 2 properties at completion. Surcharge applies.
Frequently Asked Questions
How much does the 5% surcharge add to my stamp duty?
The surcharge adds 5 percentage points to every band. For a £300,000 property: standard SDLT is £2,500, but with the surcharge it is £17,500 — an extra £15,000.
Can I avoid the surcharge by buying in my spouse's name only?
No. Married couples and civil partners are treated as one unit. Even if only one spouse's name is on the deed, both spouses' property holdings are counted.
Does the surcharge apply if I own property abroad?
Yes. HMRC counts residential property owned anywhere in the world. An apartment in Spain or a house in Australia counts toward the additional dwelling threshold.
I was given a property as a gift — does it count?
Yes. A gifted property you own (regardless of how you acquired it) counts as a residential property for surcharge purposes. The method of acquisition is irrelevant.
What if my additional property is worth very little?
Properties valued under £40,000 are excluded from the count. If your only other property is worth less than £40,000 (e.g., a garage or small plot), the surcharge may not apply.
Can I get the surcharge refunded?
Yes, if you are replacing your main residence and sell the previous one within 36 months of completion. You must claim the refund from HMRC within 12 months of the sale date.
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.