Mortgage Calculators
Second Home Stamp Duty Calculator
For a second home or a buy to let, a surcharge applies to every band. It is a large number and it is easy to underestimate when you budget.
- The surcharge applied across every band
- What it costs against the standard rate
- The 40,000 threshold where it starts
- When you can reclaim it
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| Portion of price | Rate | Tax |
|---|
England and Northern Ireland only. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, both at different rates. This covers freehold purchases; new leases, shared ownership and linked transactions are worked out differently. This is an estimate based on typical lender criteria and current rates. It is not advice, a recommendation, or an offer of credit. What you can actually borrow depends on your circumstances and the lender's own assessment.
Who actually pays the surcharge
The additional property surcharge is five per cent on top of every band, and it applies once the price reaches £40,000. It is charged on the whole purchase, not just the portion above a threshold, which is why it produces such large numbers on relatively modest properties.
It applies if you will own two or more residential properties at the end of the day of completion. That catches buy-to-let purchases, holiday homes and second homes. It does not normally catch someone selling their main residence and buying another, which is why home movers usually pay standard rates.
Let to buy is the case people get wrong. If you keep your existing home and rent it out while buying a new one to live in, you will own two properties at completion, so the surcharge applies to the new purchase. If you sell your previous main residence within three years you can normally reclaim it.
| Portion of the price | Rate |
|---|---|
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5 million | 15% |
| Above £1.5 million | 17% |
Source: GOV.UK stamp duty rates. Correct as at 15 August 2026. Rates apply in England and Northern Ireland only and can change without notice.
What the surcharge does to a typical purchase
A £300,000 purchase as a main residence for a home mover attracts £5,000 of stamp duty. The same £300,000 bought as a second home or a buy to let attracts the additional property surcharge on every band, taking it to £20,000. The surcharge is not a small adjustment; on most investment purchases it is the largest single transaction cost after the deposit.
It applies once the price reaches £40,000, and it applies to the whole price rather than just the amount above that figure. There is no gradual phase-in, so a £45,000 purchase that would otherwise be tax-free is not.
For a non-UK resident buyer a further surcharge applies on top, which stacks with the additional property rates. A non-resident buying a £300,000 investment property is therefore looking at a materially higher bill again, and it is worth establishing residence status early because the test is based on days spent in the UK rather than nationality.
The replacement-of-main-residence refund
The situation that catches most people is buying a new main home before the old one has sold. The purchase is treated as an additional property at the point of completion, so the surcharge is payable, even though you will only own two homes briefly.
If you sell the previous main residence within three years of the new purchase, you can normally reclaim the surcharge from HMRC. The claim has its own deadline, generally the later of twelve months from the sale or twelve months from the filing date of the return. Missing it means losing the refund, and it is not applied automatically.
This matters for budgeting as much as for tax. On a £400,000 purchase the surcharge is £20,000 that has to be found in cash at completion and only comes back later, if at all. Anyone considering a let-to-buy or a chain-break should plan for that cash requirement rather than assuming the refund will arrive in time to be useful. Stamp duty rules change; confirm the current position on GOV.UK or with a solicitor before relying on this.
Where to go next
Independent sources
- GOV.UK: higher rates of SDLT — The official guidance on the additional property surcharge
- HMRC stamp duty calculator — HMRC’s own calculator, for a definitive figure
Plan the Full Cost of Your Purchase
The surcharge has to be found in cash at completion. Tell us about the purchase and we will set out the full cost alongside the lending options.
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Read More About Second Properties
The surcharge is the start. Owning a second property has a tail of tax with it.
Stamp Duty Explained
Current rates, first-time buyer relief and the surcharges that catch people out.
Capital Gains Tax on Property
What you owe when you sell, the reliefs available and the reporting deadline.
Let to Buy Mortgages
Keeping your current home and letting it out while you buy the next one.
Buy to Let Mortgages
Rental cover, stress testing, and personal against company ownership compared.
Budget the surcharge properly
The surcharge applies to every band and it is easy to underestimate. Tell us about the purchase and we will cost it out.
Frequently Asked Questions – Second Home Stamp Duty Calculator
Who pays the second home stamp duty surcharge?
Anyone who will own two or more residential properties at the end of the day of completion. That includes buy-to-let purchases, holiday homes, second homes, and let to buy where you keep your existing property.
Do home movers pay the surcharge?
Usually not. If you are selling your main residence and buying another to live in, you are replacing one home with another rather than adding a second, so standard rates normally apply.
How much is the surcharge?
Five per cent on top of every band, applied to the whole purchase price rather than just a portion, once the price reaches £40,000. On a £250,000 purchase it adds £12,500 to a standard bill of £2,500.
Can I get the surcharge back?
Often yes. If you paid it because you had not yet sold your previous main residence, you can normally reclaim it if you sell that property within three years and submit a claim to HMRC within the time limits.
Does it apply to a limited company purchase?
Yes. Companies pay the higher rates on residential purchases from the first pound, with no £40,000 threshold, and additional rules apply to purchases above £500,000.
Does it apply in Scotland and Wales?
Not in this form. Scotland applies an Additional Dwelling Supplement under Land and Buildings Transaction Tax and Wales applies higher rates under Land Transaction Tax. Both differ from the England and Northern Ireland surcharge.