Second-home stamp duty surcharge
Buy an additional property and you pay extra on top of normal stamp duty: a 5% SDLT surcharge in England and Northern Ireland, an 8% supplement in Scotland, and higher rates in Wales. This shows the surcharge and the total bill.
How the surcharge works
The surcharge sits on top of the normal stamp duty you would pay anyway. In England and Northern Ireland it is a flat 5% of the whole purchase price, charged from £40,000 upwards, with no nil band of its own. So a home mover pays standard SDLT, but a buyer of a second home pays that same standard SDLT plus 5% of everything. Scotland works the same way at 8% (the Additional Dwelling Supplement). Wales is the exception: it substitutes a separate higher-rate table rather than adding a flat percentage.
The £40,000 floor is on the price, not on the tax. Once the property costs £40,000 or more, the surcharge applies to the full amount, not just the slice above £40,000.
Worked example
Take a £300,000 buy-to-let in England. Standard SDLT for that price is £5,000. The 5% surcharge adds £15,000 on the whole price, so the total is £20,000, an effective rate of 6.7%. A home mover buying the identical property would pay only the £5,000. The surcharge more than doubles the bill at this price.
The 36-month refund rule
If you are replacing your main home but buy the new one before the old one sells, you still pay the surcharge at completion. You can then reclaim it once your previous main residence is sold, as long as that sale completes within 36 months of the new purchase. The claim is not automatic. You apply to the relevant authority (HMRC for England and Northern Ireland, Revenue Scotland for Scotland, the Welsh Revenue Authority for Wales) and there are deadlines for claiming after the sale, so keep the completion dates to hand.
Common questions
How much is the second-home stamp duty surcharge?
In England and Northern Ireland the surcharge is 5% of the whole purchase price on top of standard SDLT, from £40,000 upwards. Scotland charges an 8% Additional Dwelling Supplement on the whole price. Wales uses a separate higher-rate table rather than a flat add-on. On a £300,000 purchase in England the surcharge alone is £15,000.
Does the surcharge apply to the whole price or just part of it?
The whole price. Unlike the main stamp duty bands, the surcharge is a flat percentage of the entire purchase price once you cross the £40,000 floor. There is no nil band for the surcharge itself.
Can I get the surcharge refunded?
Yes, if you were replacing your main residence. If you buy the new home before selling the old one you pay the surcharge up front, then reclaim it once the old main residence is sold, provided the sale happens within 36 months. You claim from the relevant authority, not automatically.
When does the surcharge not apply?
It does not apply if the property will be your only residence, or if the price is under £40,000. It also does not apply to most caravans, houseboats and mobile homes. Replacing a main residence on the same day avoids it entirely.
Why is the Welsh figure different?
Wales does not add a flat surcharge. It applies a completely separate set of higher residential rates to additional properties, with its own bands. This calculator flags Wales rather than guessing, because a flat add-on would give the wrong number.