The 5% Additional Property Surcharge: When You Pay and When You Don’t (2026)
Last updated 24 June 2026 · 8 min read · By the LandlordTaxAi Editorial Team
The short answer
The Stamp Duty higher-rate surcharge is 5% on top of standard SDLT for an additional residential property in England and Northern Ireland (raised from 3% on 31 October 2024). It’s charged on the whole price. You can avoid it when replacing your main home, and reclaim it if you sell your old home within 36 months.
The additional-property surcharge is the single biggest reason buying a second home or buy-to-let costs so much more than buying your only home. At 5% on the entire purchase price, it can add tens of thousands to a deal — yet the rules on when it applies (and when you can dodge or reclaim it) catch people out constantly.
The calculator above works out the surcharge for your purchase. This guide explains exactly who pays, the exemptions, and how refunds work. For the full SDLT bands, see the buy-to-let stamp duty calculator.
Free calculator · no sign-up
Additional Property Surcharge Calculator
Work out the 5% surcharge and total SDLT on a second home or buy-to-let in England & NI (2026).
Result
- SDLT (standard)
- £5,000
- SDLT (additional property, +5%)
- £20,000
- Extra paid as a landlord
- £15,000
Surcharge 5% on the whole price, from 31 Oct 2024. England & NI only. Estimate only.
When the 5% surcharge applies
You pay the surcharge if, at the end of the day of purchase, you own more than one residential property and you’re not simply replacing your main home. It applies to the whole price, including the slice below the £125,000 nil-rate band where ordinary buyers pay nothing.
It catches more than obvious buy-to-lets — second homes, holiday homes, and even an additional property bought before selling your existing one.
- Buy-to-let purchases — surcharge applies
- Second homes and holiday homes — surcharge applies
- Buying a new home before selling the old one — surcharge applies (but reclaimable)
- Companies buying residential property — surcharge (and other rules) apply
The surcharge increased from 3% to 5% on 31 October 2024, so every 2026 completion uses 5%. On a £300,000 buy-to-let that’s £15,000 of surcharge alone.
When you DON’T pay it
The main exemption is replacing your main residence. If you sell your only or main home and buy a new one to live in, you pay standard rates — no surcharge — even if you briefly own a buy-to-let alongside.
There are other situations where it doesn’t bite, too.
| Situation | Surcharge? |
|---|---|
| Replacing your only or main home | No |
| First-time buyer with one property | No |
| Property under £40,000 | No surcharge |
| Caravans, houseboats, mobile homes | Excluded |
| Additional property not replacing your home | Yes — 5% |
Mixed-use property and purchases of six or more dwellings in one transaction can fall under different rules that may avoid the residential surcharge — specialist territory worth checking.
Reclaiming the surcharge
A common scenario: you buy your new home before selling your old one, so you pay the 5% surcharge on the new purchase. You can reclaim it if you sell your previous main home within 36 months of the new purchase.
The refund isn’t automatic — you must claim it from HMRC, generally within 12 months of selling the old home (or of the SDLT return, if later). Don’t leave money on the table.
Know the surcharge before you commit
LandlordTaxAi calculates your full SDLT including the 5% surcharge and flags whether you could reclaim it — so the biggest upfront cost never surprises you.
See how it worksA worked example
Priya, who owns her home, buys a £250,000 buy-to-let in England in 2026.
| £0 – £125,000 at 5% | £6,250 |
| £125,001 – £250,000 at 7% | £8,750 |
| Total with surcharge | £15,000 |
| Of which: the 5% surcharge element | £12,500 |
| A standard buyer would pay | £2,500 |
The surcharge turns a £2,500 bill into £15,000. Priya can’t reclaim it here because this is a genuine additional property, not a delayed home sale.
Frequently asked questions
How much is the additional property surcharge?
5% on top of standard SDLT rates, charged on the whole price of an additional residential property in England and Northern Ireland (raised from 3% on 31 October 2024).
When do I have to pay it?
When you own more than one residential property at the end of the purchase day and aren’t replacing your main home — so buy-to-lets and second homes.
When is the surcharge not due?
When replacing your main residence, for properties under £40,000, and for caravans, houseboats and mobile homes.
Can I get the surcharge back?
Yes, if you paid it because your previous main home hadn’t sold — reclaim it if you sell that home within 36 months, generally claiming within 12 months of the sale.
Does it apply in Scotland or Wales?
No — this is the SDLT surcharge for England and NI. Scotland (LBTT) and Wales (LTT) have their own additional-property supplements.
Does the surcharge apply below £125,000?
Yes. Unlike standard buyers, additional-property buyers pay the 5% from the first pound, including below the nil-rate band.
Written and reviewed by the LandlordTaxAi Editorial Team. Our guides are reviewed against current HMRC guidance and updated when the rules change. Operated by LandlordTaxAi, United Kingdom. Follow us on LinkedIn.
Last reviewed: 24 June 2026 · Researched against primary UK sources for the 2026/27 tax year: https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property; https://www.gov.uk/stamp-duty-land-tax/residential-property-rates; https://www.gov.uk/government/publications/stamp-duty-land-tax-increase-to-the-higher-rates-of-stamp-duty-land-tax-and-to-the-single-rate-payable-by-non-natural-persons/stamp-duty-land-tax-increase-to-the-higher-rates-on-additional-dwellings-and-to-the-single-rate-of-tax-on-purchases-by-non-natural-persons. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.