Stamp duty for second homes

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 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:

• England and Northern Ireland - a minimum of 5%

• Scotland - a minimum of 8%

• Wales - a minimum of 5%

Here are the stamp duty threshold bands for England and Northern Ireland from 1 April 2025:

Here are the Additional Dwelling Supplement (ADS) bands for Scotland:

Here are the Higher Rates of Land Transaction Tax bands for Wales:

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

If you're buying a second property with the intention to make it your primary residence, you must officially nominate the second home as your main residence within two years of purchase by writing to HM Revenue and Customs (HMRC).

There is no statutory definition or set amount of time you need to have lived somewhere for it to be your main residence.

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.

In England and Northern Ireland, you can apply to get a refund for the extra 5% paid in stamp duty surcharge, as long as you've sold your first home.

For example, if you're moving house and you've bought your new home before selling your old one, your new home would be subject to the stamp duty surcharge.

When you sell your old home, your new home will become your main residence, meaning it is no longer subject to the second home stamp duty. 

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

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

For the foreseeable future, it's unlikely that second home stamp duty will be completely scrapped. 

However, the stamp duty threshold is liable to change. For instance, a temporary cut to stamp duty was introduced in September 2022. This is set to end on 31 March 2025, with higher rates to take effect from 1 April 2025.

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?

Compare mortgage deals

Whether you're a first-time buyer or home mover you'll want to shop around for the best possible mortgage deal.

We can help you find a deal to suit your needs. All you need to do is provide us with a few details about yourself, your property and your current mortgage (if you have one) and we'll do the rest.

You can sort through a range of mortgages offered by lenders from across the market.

Make use of our mortgage repayment calculator to see how much your repayments could cost you. You can also use our affordability calculator to find out how much you could borrow for your new home.

Your home may be repossessed if you do not keep up repayments on your mortgage.