Stamp duty for second homes

Key takeaways

• Buying a second residential property usually triggers a higher stamp duty rate, with the exact surcharge depending on property value and where you are in the UK

• If you sell your previous main residence within the allowed timeframe (typically three years), you can usually claim a refund of the additional stamp duty paid

• Some exemptions exist, such as inherited property or transfers on divorce, where the additional stamp duty may not apply

What is stamp duty for second homes?

Stamp duty is a tax you pay when buying a residential or non-residential property over a certain price. If you already own one residential property and want to buy another, you'll have to pay a higher rate of stamp duty.

This is called the stamp duty surcharge. 

This additional tax has a different name, depending on which country in the UK you're in:

• England and Northern Ireland – Stamp Duty Land Tax (SDLT) surcharge

• Scotland – Additional Dwelling Supplement (ADS)

• Wales – Higher Rate of Land Transaction Tax (LTT)

The rate of stamp duty surcharge you'll pay on your second home depends on several factors, including:

• The value of the property

• Where you live (England, Scotland, Wales or Northern Ireland)

• Whether you're a UK resident (non-UK residents have to pay an extra 2% surcharge on top of existing stamp duty rates in England and Northern Ireland)

How much is stamp duty on a second home?

How much stamp duty surcharge you'll need to pay depends on where you're buying the property, as different parts of the UK have different rules.

For the tables below, the charges are shown as percentages for each portion of the purchase, ie. 3% up to £125k, then 5% up to £250k etc. For an easy way to get a quote on how much land tax you may owe, use our stamp duty calculator.

England and Northern Ireland. Second homes pay the standard SDLT plus a 3% surcharge on the purchase price (extra 2% for non-UK residents). Here are the stamp duty threshold bands from 1 April 2025.

Here are the Additional Dwelling Supplement (ADS) bands for Scotland. Second home purchasers pay the land tax, plus a 8% Additional Dwelling Supplement (ADS) on the purchase price.

Here are the Higher Rates of Land Transaction Tax bands for Wales. Unlike second home purchasers in the rest of the UK, buyers in Wales do not pay a flat surcharge. Instead, they pay higher residential land tax rates, which are tiered depending on the property price. (Note: In Wales the thresholds are different from main residence purchases)

Want to find out exactly how much stamp duty you'll have to pay? Use our Stamp Duty Calculator to get a quick quote.

What counts as a second home?

A second home refers to any property you buy in addition to the one you already own (which is considered to be your main residence). This includes:

• Buy-to-let properties

• Holiday homes

• Property bought as a family gift

Will I have to pay extra stamp duty if there is a delay in selling my old home?

If you buy a new home before selling your previous main residence, you’ll usually have to pay the higher rate of stamp duty that applies to additional properties.

However, once you sell your former main residence, you can normally claim a refund of the surcharge, as long as the sale happens within the permitted timeframe.

The exact rules and ways to claim differ from nation to nation within the UK, but generally you can reclaim additional stamp duty as long as you sell the original property within three years.

How can I claim a stamp duty refund?

Refunds can be filed online via HMRC (England/Northern Ireland), Revenue Scotland, or Welsh Revenue Authority.

Solicitors may submit on your behalf, but buyers must ensure the claim is made within the allowed timeframe.

In England and Northern Ireland, you can apply for a stamp duty refund and claim back the extra tax paid on your new home via the Gov.uk website, as long as:

You sell your original home within three years of buying your second home, and

You claim the refund within either 12 months of the sale, or 12 months of the filing date of your stamp duty return (whichever comes later)

In Scotland, you can apply for a repayment of the Additional Dwelling Supplement once the sale of your previous main residence is complete, as long as the sale goes through within three years of your new purchase (18 months if your new purchase was before 1 April 2024).

In Wales, you also have 36 months to sell your old property after buying a new one to get a Land Transaction Tax refund.

Can I avoid paying second home stamp duty?

In some circumstances, you may be able to claim back stamp duty when purchasing a second home.

You can apply for a stamp duty refund and claim back the extra tax paid on your new home via the Gov.uk website, as long as:

• You sell your original home within three years of buying your second home, and

• You claim the refund within either 12 months of the sale, or 12 month of the filing date of your stamp duty return (whichever comes later)

If you're buying a second home with the intention to gift it to your children, you will be liable to pay the stamp duty surcharge. However, there are ways to avoid the additional tax. You can:

• Act as a guarantor for your child, instead of taking out a mortgage in your name. As a result, your child's name will be on the deeds, and they own the property

• Gift a house deposit to your child, so they meet the affordability criteria for the mortgage

• Take out a family-offset mortgage to pay for the deposit, which offsets your savings against your child's mortgage

Are there any exemptions to second home stamp duty?

Yes, there are situations where you can be exempt from paying stamp duty on an additional property. You might not have to pay if:

• You inherited the property in a will. However, if you buy another home in the future, you'll have to pay stamp duty surcharge on the new one as you now own two properties

• You're transferring ownership of a property following a divorce, annulment or legal separation. In these instances, you can get a 'property adjustment order', which transfers the ownership of the marital home to one party, allowing the other party to buy a new home without paying the second home surcharge

• You buy a freehold property that costs less than £40,000

• You buy a seven-year (or over) lease for less than £40,000, with annual rent below £1,000

• You're buying a caravan, motorhome or houseboat

Do I have to pay additional stamp duty on non-residential or commercial property?

No, the additional SDLT surcharges for second homes only applies to residential properties.

For non-residential or commercial properties like offices, shops, warehouses, or mixed-use properties) standard SDLT rates (or LBTT in Scotland, LTT in Wales) apply (these differ from residential rates), but there is no extra property surcharge.

So even if you already own a commercial building and buy another, you do not pay an extra percentage like you would for a second residential home. Only residential ownership triggers the additional SDLT rate.

Is second-home stamp duty ever likely to be scrapped?

It’s unlikely that the second-home stamp duty surcharge will be scrapped anytime soon.

The government briefly eased stamp duty in September 2022 to boost the housing market, but that temporary cut ended on 31 March 2025.

Since then, the usual higher rates for second homes have stayed firmly in place.

Because the surcharge raises significant revenue and helps discourage buy-to-let speculation, there’s been no real indication from the government that it plans to remove it.

Does buying leasehold instead of freehold change how much additional stamp duty I pay?

For leasehold properties, SDLT may include the net present value (NPV) of ground rent if it is unusually high or escalates, potentially increasing the tax owed.

Our other useful guides

Check out our other guides for more information on mortgages and selling your home.

• Do I need a solicitor to sell my house?

• Tenants-in-common mortgages explained

• Should I extend my mortgage to lower my monthly costs?

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