Stamp Duty on Second Homes & Buy-to-Let: The 5% Surcharge + Refunds (2026)
Last updated 23 June 2026 · 9 min read · By the LandlordTaxAi Editorial Team
The short answer
When you buy a buy-to-let or second home in England or Northern Ireland for £40,000+, you pay a 5% surcharge on top of standard Stamp Duty — added to every band. If you bought a new main home before selling your old one, you can reclaim the surcharge by selling the old home within 36 months. Scotland and Wales have their own versions (8% ADS / LTT higher rates).
The additional-property surcharge jumped from 3% to 5% on 31 October 2024, and it is now the biggest single upfront cost of buying a rental. Most landlords budget for it; far fewer know they can sometimes get it back. This guide covers the current bands, exactly when the surcharge bites, and the refund window that catches people out. To check whether you may be due money back, use our SDLT refund checker.
The 2026 bands for additional property
The 5% is added to each standard band. For an additional residential property in England and Northern Ireland:
| Portion of price | Standard rate | Additional property |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5m | 10% | 15% |
| Above £1.5m | 12% | 17% |
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Stamp Duty (SDLT) calculator
Work out your SDLT including the 5% additional-property surcharge
Result
- SDLT (standard)
- £5,000
- SDLT (additional property, +5%)
- £20,000
- Extra paid as a landlord
- £15,000
Estimate based on verified 2026/27 UK rates. Informational only — not personal tax advice.
Could you be owed a Stamp Duty refund?
If you paid the surcharge and later sold your old main home, you may be able to reclaim it. Check in under a minute.
Open the SDLT refund checkerA full worked example
Aaron, who already owns his home, buys a £300,000 buy-to-let. Here is how the surcharge stacks up against standard Stamp Duty:
| Band | Calculation | SDLT |
|---|---|---|
| First £125,000 | 5% | £6,250 |
| £125,001–£250,000 | 7% | £8,750 |
| £250,001–£300,000 | 10% | £5,000 |
| Total SDLT | — | £20,000 |
On the same £300,000 home as a standard purchase, Aaron would pay just £5,000. The additional-property rules quadruple it to £20,000 — £15,000 of which is the surcharge. On a buy-to-let, this is a real cost you cannot reclaim; the refund route only exists when the second property is actually a replacement main home.
The refund window — don’t miss it
The one scenario where you get the surcharge back is buying your new main home before selling the old one. You pay the 5% up front, then reclaim it once you sell the previous main residence — provided that sale happens within 36 months.
Deadline trap: you must claim the refund within 12 months of selling the old home, or within 12 months of the filing date of the original Stamp Duty return, whichever is later. Miss it and the money is gone. People who moved during a slow chain are the ones most often caught out.
Frequently asked questions
How much is the Stamp Duty surcharge on a second home?
Since 31 October 2024 the surcharge on additional residential property in England and Northern Ireland is 5% on top of the standard Stamp Duty rates, added to every band. It applies when you buy an additional dwelling for £40,000 or more and you already own another residential property anywhere in the world. Scotland charges an 8% Additional Dwelling Supplement under LBTT, and Wales charges higher rates of Land Transaction Tax.
When does the higher rate apply?
The higher rates apply when, at the end of the day of purchase, you own two or more residential properties and you are not replacing your only or main residence. So buy-to-let purchases, holiday homes and second homes are caught. If you are buying a new main home but have not yet sold your old one, you pay the surcharge up front and can reclaim it later if you sell the old home in time.
Can I get the Stamp Duty surcharge refunded?
Yes, in one specific situation: if you bought a new main residence before selling your previous main residence, you pay the 5% surcharge on the new home, then reclaim it if you sell the old main home within 36 months. You must claim the refund within 12 months of selling the old home, or within 12 months of the filing date of the original return, whichever is later. This refund does not apply to genuine buy-to-let or second homes you keep.
Is the surcharge added to every band?
Yes. The 5% is added to the standard rate in each band, not just the top slice. So where a standard purchase pays 0% on the first £125,000, an additional-property purchase pays 5% on that same slice, then 7% on the next band, 10% above £250,000, and so on. This is why the surcharge can dwarf the standard Stamp Duty on a lower-value buy-to-let.
Do first-time buyers pay the surcharge?
No. First-time buyers buying their only home do not pay the surcharge and may also qualify for first-time buyer relief. The surcharge is specifically aimed at people acquiring an additional property while already owning one, so it does not catch someone stepping onto the ladder for the first time with a single home.
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: 23 June 2026 · Based on HMRC guidance on higher rates of Stamp Duty Land Tax for additional dwellings (5% from 31 October 2024) and the refund rules for replacing a main residence. Rates shown are for England and Northern Ireland; Scotland (LBTT/ADS) and Wales (LTT) differ. This article is informational only and does not constitute tax advice. Always check the latest details on GOV.UK or with a qualified adviser.