Second Home Stamp Duty 2026/27 — SDLT Surcharge Rates, Rules & Refunds

Buying a second home or buy-to-let in England or Northern Ireland can trigger the higher Stamp Duty Land Tax rates. For purchases with an effective date on or after 1 April 2025, the higher rates are 5 percentage points above the standard residential rates. They generally apply where the property costs £40,000 or more, you will own more than one dwelling after completion, and the purchase is not replacing your main residence. A £300,000 additional dwelling costs £20,000 in SDLT under the current higher-rate bands. Estimate your bill with the Second Home SDLT Calculator→.

This guide covers the current rate table, the ownership test, the 3-year replacement rule, refunds and the reliefs that can remove or reduce the charge.

The Rate Table

For the current higher rates, the five-point increase is applied to the portion of the price in each band. Rates shown apply to residential purchases in England and Northern Ireland with an effective date on or after 1 April 2025. The property-count test is applied at the end of the effective day, normally completion — so selling the old home before completion can change the result.

Worked Example 1 — £300,000 Second Home

The standard bill on a £300,000 main residence is £5,000 (£125,000 at 0%, £125,000 at 2% and £50,000 at 5%). The higher-rate difference is £15,000.

Worked Example 2 — £500,000 Buy-to-Let

Without the higher rates this purchase costs £15,000 in SDLT, so the higher-rate difference is £25,000. Include the applicable SDLT amount in any buy-to-let yield calculation.

When the Surcharge Applies

The rules look at ownership, not use. Buying a flat for your child to live in rent-free can still trigger the higher rates if you already own another property. Married couples and civil partners are generally treated as a single unit, so a spouse's existing property can affect a joint purchase; unmarried buyers are assessed under different individual ownership rules.

The 3-Year Replacement Rule and Refunds

If you buy a new main residence before selling the old one, you pay the higher rates at completion — then claim a refund when the old home sells within three years. For a previous main home sold on or after 29 October 2018, HMRC must receive the refund request by the later of 12 months after the sale or 12 months after filing the SDLT return for the new home. The earlier transitional rule for homes sold on or before 28 October 2018 used the later of three months after sale or 12 months after filing. Miss the three-year window and the refund is normally unavailable, though exceptional circumstances may qualify for special treatment. Structuring the sale first is cleaner: complete on the new home only after completing the sale of the old one where timing allows.

First-Time Buyers

First-time buyer relief is separate from the higher-rate rules. For a qualifying purchase of £500,000 or less, the relief currently gives 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000. The buyer must not have previously acquired a major interest in a dwelling anywhere in the world and must intend to occupy the property as their main residence. There is no first-time buyer relief for a purchase above £500,000, and someone who already owns another dwelling generally cannot use the relief to remove the higher rates.

Companies, Scotland and Wales

Certain companies and other non-natural persons pay a 17% single rate on residential properties costing more than £500,000, subject to the corporate-body rules and exceptions. A separate Annual Tax on Enveloped Dwellings regime can also apply to companies holding qualifying UK residential property; its thresholds and annual charges are separate from SDLT. Scotland and Wales have devolved property taxes, so use their current official guidance rather than applying the England and Northern Ireland SDLT table.

Gifts, Trusts and Joint Purchases

The higher-rate rules are applied to the transaction and ownership facts, not simply to how the property will be used. Married couples and civil partners are generally treated as a single unit for the property-count test. Unmarried joint buyers, gifts, transfers involving debt and trusts have detailed rules that can change the result, so do not assume that dividing ownership or transferring a property removes the higher rates. Use HMRC guidance and professional advice for structured arrangements.

The practical lesson from the ownership test is timing. If you are selling one home and buying another, completing the sale before the purchase can avoid the higher rates where the replacement conditions are met. Where that is impossible, budget for the higher rates at completion and use the refund route if the old home is sold within the qualifying period.

Filing and Payment Timelines

SDLT is not paid at exchange — it is due within 14 days of completion, when the return is filed. Buyers do not need to submit the return themselves: the conveyancing solicitor commonly handles it, and the funds are taken from the completion monies. The 14-day window is a hard deadline, and late returns carry penalties plus interest. For a previous main home sold on or after 29 October 2018, HMRC must receive the higher-rate refund request by the later of 12 months after the sale or 12 months after filing the SDLT return for the new home. Companies holding qualifying residential property may also face a separate Annual Tax on Enveloped Dwellings regime, with its own thresholds and deadlines.

Frequently Asked Questions

Evidence and decision checks

A reliable second home stamp duty 2026 27 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

Estimate your bill with the Second Home SDLT Calculator→, then read the Stamp Duty Land Tax guide for standard rates and the First-Time Buyer Stamp Duty guide if relief might apply.

Official sources

• GOV.UK: SDLT on buying an additional residential property
• GOV.UK: refund of higher SDLT rates
• GOV.UK: SDLT relief for land or property transactions
• GOV.UK: SDLT and corporate bodies
• GOV.UK: SDLT reliefs and exemptions

These GOV.UK sources are the official references for higher SDLT rates, the ownership test, replacement-home refunds, reliefs and corporate-buyer treatment discussed here.