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 price | Standard rate | Second-home rate |
|---|---|---|
| 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% |
| Over £1,500,000 | 12% | 17% |
Worked examples
| Property price | Moving home | Second 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.
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