Stamp Duty CalculatorSecond Home Stamp Duty Calculator
Calculate SDLT on a holiday home or second residence — 2026 rates
A second home — anywhere in the world owned alongside your main residence — triggers the higher rates of SDLT in England and Northern Ireland: standard rates plus a 5% surcharge in every band.
Rate breakdown
| Band | Rate | Taxable | Tax |
|---|---|---|---|
| Total | £0 | ||
Comparison
| Band | Rate | Taxable | Tax |
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Total cost to complete
| Item | Estimate |
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Saved scenarios
What counts as a second home?
For SDLT purposes, a "second home" or "additional residential property" is any residential property you'll own at the end of the day of completion that isn't replacing your only or main residence. The rules look at all residential property you own anywhere in the world — including overseas villas, inherited shares of family homes, and properties owned jointly with other people.
Common second-home scenarios
- Holiday home in Cornwall while living in London. Higher rates apply — your London home stays your main residence; the Cornwall property is "additional".
- You inherited a 25% share of your parents' home five years ago. If your share is worth more than £40,000, that share counts as a residential interest and any new purchase becomes "additional".
- You own a flat overseas you rent out. Counts as a residential interest. Buying any home in the UK triggers higher rates unless you're replacing your main residence and the UK home becomes your new main home.
- You and your spouse jointly own one home; you're now buying another in just your name. The rules treat married couples and civil partners as a single unit. Higher rates still apply.
Replacing your main residence
If the new property will become your only or main home and you've sold (or are selling on the same day) your old main home, the surcharge does not apply. If you complete on the new home before selling the old one, you'll pay the surcharge upfront and reclaim it once you sell — provided the sale happens within three years. This is the most common refund scenario.
Worked examples
- £300,000 holiday cottage: £125,000 × 5% + £125,000 × 7% + £50,000 × 10% = £20,000 SDLT (effective 6.7%).
- £500,000 second home: £125,000 × 5% + £125,000 × 7% + £250,000 × 10% = £40,000 SDLT (effective 8%).
- £800,000 second home: £125,000 × 5% + £125,000 × 7% + £550,000 × 10% = £70,000 SDLT (effective 8.75%).
The 2026 second-home rate table
| Portion of price | Standard | Second home |
|---|---|---|
| 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% |
How the second-home SDLT bill compares
The 5% surcharge meaningfully increases the cost of buying a holiday home or weekend cottage in popular UK locations. Comparing standard and second-home SDLT across typical UK holiday-home price points:
| Property price | Standard SDLT | Second-home SDLT | Extra cost |
|---|---|---|---|
| £200,000 (rural cottage) | £1,500 | £11,500 | +£10,000 |
| £300,000 (Cornish cottage) | £5,000 | £20,000 | +£15,000 |
| £450,000 (Lake District) | £12,500 | £35,000 | +£22,500 |
| £600,000 (Cotswolds) | £20,000 | £50,000 | +£30,000 |
| £900,000 (West Sussex) | £35,000 | £77,500 | +£42,500 |
| £1.2m (coastal villa) | £59,250 | £123,750 | +£64,500 |
The surcharge adds £10,000 at the entry end and £64,500 at the upper end of typical second-home pricing. It also hits properties below the standard nil-rate band the hardest in proportional terms — a £125,000 second home pays £6,250 in SDLT when the equivalent first-time-buyer or main-residence purchase would pay nothing.
Joint ownership for second-home buyers
The most common second-home structuring question is whether to buy jointly with a spouse or to put the property in one name. The answer almost always: it makes no SDLT difference for married couples or civil partners. The rules treat the spouses as one unit, so the surcharge applies regardless of how the legal title is held. Tax planning happens after purchase, through declaration of trust or Form 17 elections to allocate income, not through SDLT structuring.
For unmarried couples, the picture is different. If only one partner owns the existing main home, the other partner can buy a second property in their sole name without triggering the surcharge — provided that partner doesn't own any other residential property anywhere in the world. This is a meaningful SDLT saving on typical second-home values, but it has consequences (the buying partner is solely liable for the mortgage, and the non-buying partner has no automatic beneficial interest).
Holiday homes vs furnished holiday lets
A second home used purely for personal use is treated the same as a second home let occasionally to friends and family — additional-property rates apply. The distinction that matters is whether the property qualifies as a Furnished Holiday Let (FHL) for tax purposes — but that affects income tax and CGT, not SDLT.
The 2024 changes to the FHL regime (the abolition of the special FHL income tax treatment from April 2025) mean many second-home owners are reviewing whether to continue letting. For SDLT, this doesn't matter — the property's SDLT treatment was fixed at purchase. For ongoing tax, FHL income now falls under standard property income rules.
Inherited property and the second-home surcharge
Inherited property can push you into "second home" territory even if you don't think of yourself as a second-home owner. The rules:
- Inherited share of 50% or less: Doesn't count toward the surcharge if you buy a different property within 3 years.
- Inherited share above 50%: Full second-home surcharge applies on any new purchase.
- 3-year clock: Starts at grant of probate (when you legally inherit), not at the date of death.
- Inheritance after a purchase: Doesn't retrospectively trigger the surcharge — SDLT is fixed at completion.
A common scenario: parent dies leaving the family home equally to three siblings. Each sibling has a 33% share. If any sibling buys their own first home within 3 years of probate, the inherited share doesn't trigger the surcharge — because it's below 50% and within the 3-year window.
Replacement of main residence — the most common refund route
If you're moving home and buying a new main residence while still owning the old one, you'll pay the second-home surcharge at completion. But this is reclaimable if you sell the old main residence within 36 months of the new completion.
The mechanics:
- Complete the new purchase. Pay the surcharge as part of normal SDLT.
- Sell the old main residence within 36 months.
- File Form SDLT16 with HMRC within the later of 12 months from the sale or 12 months from the SDLT filing deadline of the new purchase.
- HMRC refunds the surcharge portion (5% of the new purchase price banded structure).
Use the SDLT refund calculator to model the reclaim figure, and the refund guide for the full process and supporting documents.
Total cost of buying a second home
SDLT dominates the upfront cost of a second-home purchase, but the full bill typically includes several other lines that buyers often underestimate:
| Item | Typical cost (£350k cottage) |
|---|---|
| Deposit (25% on second-home mortgage) | £87,500 |
| Second-home SDLT | £25,000 |
| Conveyancing + searches | £1,800 |
| Survey (Level 3 for older property) | £900 |
| Mortgage product fee | £1,500 |
| HM Land Registry fee | £270 |
| First-year buildings insurance | £550 |
| Furnishing + welcome pack | £4,000 |
| Council tax (year one, premium possible) | £3,500 |
| Total upfront / year one | £125,020 |
The £25,000 SDLT bill on this £350k cottage is the second-largest line after the deposit. Use the home buying cost calculator to model the full upfront figure at your purchase price.
Second-home council tax premiums
Beyond SDLT, second-home owners face the council tax premium regime that came into force on 1 April 2025. Local authorities in England can charge up to 100% extra council tax on second homes (i.e. double the standard rate). Many councils in coastal and tourist areas have adopted the maximum premium.
Adding the premium to the typical £2,000 annual council tax bill means a coastal second home in Cornwall, Devon, or the Lake District could easily pay £3,500-£4,000 a year in council tax alone — a meaningful ongoing cost on top of the SDLT bill at purchase.
Wales has had a council tax premium of up to 300% on second homes since April 2023, with some local authorities applying the maximum. Scotland's councils have powers up to 100% premium from April 2024. The combined SDLT + council tax stack has meaningfully changed the economics of second-home ownership in popular UK locations.
How the second-home SDLT bill flows to HMRC
Like all SDLT, the second-home bill is due within 14 days of completion. Your conveyancer handles the payment from completion funds:
- Conveyancer adds SDLT to the completion statement.
- You transfer total completion funds (deposit + mortgage advance + SDLT + fees) to conveyancer.
- Conveyancer files SDLT return on HMRC portal within 14 days.
- HMRC issues SDLT5 certificate.
- Conveyancer lodges SDLT5 with HM Land Registry for title registration.
Keep the SDLT5 with your second-home records — you'll need it for capital gains tax base-cost calculation when you eventually sell.
Why the 2026 rates differ from earlier years
The calculator's rates reflect the current 5% surcharge that came into force on 31 October 2024. Before that date, the surcharge was 3%. The increase was applied to all transactions completing on or after 31 October 2024, with limited transitional relief for contracts exchanged before that date and substantially performed before 31 March 2025.
The standard SDLT bands also reverted from temporary 2022-25 thresholds (£250,000 nil-rate band) back to the pre-2022 thresholds (£125,000 nil-rate band) on 1 April 2025. So a second-home purchase completing in 2026 pays:
- The 5% surcharge (not the old 3%).
- The standard rate structure (not the temporary £250,000 nil-rate band).
The combined effect: a £250,000 second-home purchase completing in 2026 pays £15,000 SDLT. The same purchase completing in March 2025 would have paid £7,500 (£0 standard + 3% × £250,000 surcharge). The bill has effectively doubled compared with the pre-October-2024 regime.
Common second-home SDLT mistakes
Forgetting about overseas property
The surcharge test looks at residential property anywhere in the world. A French gîte, Spanish apartment, Portuguese villa, or US condo all count toward the test on a UK second-home purchase. Buyers who don't disclose overseas ownership face penalties and interest if HMRC later discovers the property.
Misreading the inheritance rules
The inheritance relief (50% or less share, 3-year window) is narrower than many buyers assume. A sole-beneficiary inheritance doesn't qualify regardless of timing. A 50% share with one sibling qualifies if the new purchase is within 3 years of probate.
Assuming the surcharge is on the surcharge band only
The 5% surcharge applies to every band above the £40,000 threshold, not just the top band. A £150,000 second home pays 5% on the first £125,000 (the standard nil-rate band) plus 7% on the next £25,000 — total £8,750. Not 5% on the band above £125,000 alone.
Frequently asked questions
What counts as a second home for stamp duty?
Any residential property you'll own at the end of completion day in addition to your main residence — anywhere in the world. Includes holiday homes, pied-à-terres, overseas villas, inherited shares above 50%, and properties owned jointly with others.
Do I pay the surcharge if I own a property abroad?
Yes — the surcharge looks at residential property ownership worldwide, not just in the UK. An overseas villa, French gîte, or Spanish apartment all count toward the surcharge test on a UK purchase.
Can I avoid the surcharge by buying in my spouse's name?
No — married couples and civil partners are treated as a single economic unit for SDLT. If either spouse owns a property, a purchase by the other spouse still triggers the surcharge.
What if my second home becomes my main residence?
The surcharge applies based on facts at completion. If you later make the new property your main residence and sell the old main residence within 36 months, you can reclaim the surcharge via Form SDLT16.
Are there separate rates in Scotland and Wales?
Yes. Scotland's second-home rate is LBTT's 8% Additional Dwelling Supplement (flat). Wales uses LTT's higher residential rates (a banded structure peaking at 17%). Both differ materially from England's 5% banded surcharge.
Can I get the surcharge back if I sell the second home later?
No — the surcharge is only reclaimable if the purchase was replacing your main residence and you sell the old main residence within 36 months. Selling the second home later doesn't unlock a refund.
Why the calculator defaults to "additional property"
The calculator opens in additional-property mode because that's the assumed buyer type for second-home purchases. If you're actually buying a sole or replacement main residence and the second-home framing was wrong, switch to "standard residential" or "first-time buyer" using the buyer-type toggle. The comparison feature lets you see both bills side-by-side, which is useful when you're not yet sure whether the surcharge applies (for example, before deciding whether to sell the old main home before completion or simultaneously). For a deeper look at the underlying rules and edge cases, see the full second home SDLT guide.
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Rates last verified against HMRC: 1 May 2026.