Second Home Stamp Duty 2026/27: The 5% Surcharge Explained

The short answer: buying a second home in England or Northern Ireland adds a 5% surcharge on top of every standard band — so you pay 5%, 7%, 10%, 15% and 17% instead of 0%, 2%, 5%, 10% and 12%.

Second-home stamp duty rates 2026/27 (England & NI)

The higher rates for additional dwellings, in force since 31 October 2024:

Portion of priceStandard rateSecond-home rate
Up to £125,0000%5%
£125,001 – £250,0002%7%
£250,001 – £925,0005%10%
£925,001 – £1,500,00010%15%
Over £1,500,00012%17%

Worked examples

Property priceMoving homeSecond home
£200,000£1,500£11,500
£300,000£5,000£20,000
£500,000£15,000£40,000

When does the surcharge apply?

It applies when you already own a residential property anywhere in the world and you’re buying an additional one. There’s an important escape hatch: if you’re replacing your main residence — selling your old home and buying a new one — the surcharge doesn’t apply as long as you sell the old home within 3 years. Pay it upfront and sell in time, and you can reclaim the surcharge from HMRC.

Scotland and Wales

Scotland charges an 8% Additional Dwelling Supplement on the full purchase price (for properties £40,000+), on top of normal LBTT — e.g. £28,600 on a £300,000 second home. Wales uses a separate higher-rate LTT table (5%–17% across six bands).

Questions, answered

I’m selling my current home but buying the new one first. Do I pay the surcharge?

Yes, upfront — because at completion you own two properties. But sell your old main home within 3 years and you can reclaim the surcharge.

Does the surcharge apply if my other property is abroad?

Yes. Ownership anywhere in the world counts when deciding whether a purchase is an additional dwelling.

What if I’m buying jointly and only one of us owns another property?

The surcharge applies to the whole transaction if any buyer already owns a dwelling. It only takes one existing property between you.

Can I avoid it by putting the property in my spouse’s name?

Married couples are treated as a single unit for the surcharge — a property owned by either spouse counts. HMRC watches this closely.

Work out your exact bill

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Rates verified: October 2026 · Sources: gov.uk, Revenue Scotland, gov.wales. Estimates for guidance only — not financial or legal advice.