Since 31 October 2024, buyers purchasing an additional residential property in England and Northern Ireland pay a 5% surcharge on top of the standard Stamp Duty Land Tax (SDLT) rates. This applies to buy-to-let purchases, second homes, and holiday homes. The surcharge was previously 3%, raised to 5% in the Autumn Budget 2024.
Who does the surcharge apply to?
The 5% SDLT surcharge applies if:
- You are purchasing a residential property and will own two or more residential properties at the end of the day of completion
- You are purchasing through a company or trust (a flat surcharge of 5% applies to all residential purchases for companies)
It applies to individuals, partnerships, and companies.
SDLT rates for additional residential properties (2025/26)
| Property value band | Standard SDLT rate | With 5% surcharge |
|---|---|---|
| Up to £250,000 | 0% | 5% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 15% |
| Above £1,500,000 | 12% | 17% |
Worked example
Purchasing a buy-to-let property for £350,000 in 2025/26:
- On £250,000 at 5%: £12,500
- On £100,000 at 10%: £10,000
- Total SDLT: £22,500
Without the surcharge, standard SDLT on £350,000 would be £5,000 (0% on £250,000, 5% on £100,000). The surcharge adds £17,500 to the purchase cost.
Replacing your main residence
The surcharge does not apply if you are replacing your main residence. If you sell your previous main home and buy a new one, you pay standard SDLT rates even if you temporarily own two properties. If you buy your new main home before selling the old one, you initially pay the surcharge but can claim a refund within 12 months of selling the previous main residence.
Scotland and Wales
Scotland uses Land and Buildings Transaction Tax (LBTT), which has its own additional dwellings supplement (currently 8% in 2025/26). Wales uses Land Transaction Tax (LTT) with its own higher residential rates. These are separate from SDLT, which only applies in England and Northern Ireland.
Company purchases
Companies purchasing residential property always pay SDLT at the higher rates, regardless of whether it is a first or additional property. There is also an Annual Tax on Enveloped Dwellings (ATED) for properties worth more than £500,000 held in companies, which adds an annual charge.
SDLT rates and surcharges are subject to change at each Budget. Always verify current rates on GOV.UK before exchanging contracts, as the rate applicable is determined by the date of completion.
This guide is for general information only. Property taxation is complex and frequently changes. Always consult a qualified tax adviser or accountant before making decisions. Find one via our accountant directory.