Property details
Band-by-band breakdown
| Price band | Rate | SDLT in band |
|---|
How second-home Stamp Duty works in 2026/27
For purchases of additional residential property in England and Northern Ireland, the standard Stamp Duty bands apply but with a 5 percentage point surcharge added to every band. The surcharge was raised from 3% to 5% in October 2024 and remains in place for 2026/27.
| Price band | Standard rate | Additional-rate (5% extra) |
|---|---|---|
| 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% |
Non-UK residents pay an additional 2 percentage points on every band on top of whatever else applies. So a non-UK-resident buyer of a second home in the £250,001-£925,000 band pays 12% — 5% base + 5% additional-rate surcharge + 2% non-resident surcharge.
The "replacing main residence" exception
If the additional-property surcharge would catch you simply because of bridging timing (you've bought the new home before selling the old one), you can claim back the surcharge if you sell the previous main residence within 3 years of completing the new purchase. Apply via gov.uk's reclaim form, supporting it with the sale completion documents.
The 6-property "mixed-use" trick — and why it usually fails
HMRC has tightened the rules around classifying property purchases as "mixed-use" (residential plus commercial), which historically attracted lower SDLT. From April 2024, claiming mixed-use treatment requires substantive ongoing commercial use of part of the property — buyers attempting to claim this on a small annexe or paddock have generally lost when challenged. Get specific tax advice before relying on this.
Limited company purchases
Buying additional residential property through a limited company attracts the same 5% surcharge plus, for properties over £500,000, the Annual Tax on Enveloped Dwellings (ATED) regime. ATED is a flat annual charge that scales with property value (£4,400/year for a £1m property in 2026/27, rising sharply above that). Most buy-to-let landlords with fewer than 4 properties find the ATED + corporation tax cost outweighs the personal-tax savings.
Common mistakes
- Forgetting the surcharge applies even when buying with a partner who already owns property. If either name on the deed already owns residential property anywhere in the world, the additional-rate surcharge applies to the whole purchase.
- Assuming inherited property doesn't count. Inheriting a property does count — if you inherit even a small share of a property and then buy a "main residence", you'll pay the surcharge unless you sell the inherited share or your share is below 50% and worth less than £40,000.
- Missing the 3-year reclaim window. Even if you have a clear plan to sell the old home, the reclaim doesn't happen automatically — you must file the reclaim with HMRC after the old-home sale completes.
- Treating the surcharge as deductible from rental income for tax purposes. SDLT is a capital cost, not a revenue expense — it adds to the property's base cost for CGT purposes when you eventually sell.
Related calculators and guides
Standard Stamp Duty calculator for first-home and main-residence purchases. Buy-to-let calculator for the full landlord economics. CGT property calculator for when you eventually sell.