Stamp Duty on Second Homes 2026 - The 5% Surcharge Explained
Buying a second home, holiday let or investment property? You pay an extra 5% on every band.
Buying a second home, holiday let or buy-to-let? You pay an extra 5% on top of standard stamp duty rates on every band. This surcharge increased from 3% to 5% in October 2024.
Second Home Calculator
Who Pays the 5% Surcharge?
- Second homes and holiday homes
- Buy-to-let investment properties
- Properties purchased by a company
- Any purchase where you already own another property (including overseas)
- Buying before selling your existing main residence
- Replacing your main residence (if you sell within 3 years)
- Properties costing £40,000 or less
- Caravans, mobile homes, and houseboats
- Transfers between spouses/civil partners
- Transfers on divorce or dissolution
What the 5% Surcharge Costs at Different Price Points
England and Northern Ireland. Standard vs additional property rates, 2026.
| Property price | Standard buyer | Additional property | Extra cost of surcharge |
|---|---|---|---|
| £200,000 | £1,500 | £11,500 | £10,000 |
| £300,000 | £5,000 | £20,000 | £15,000 |
| £500,000 | £17,500 | £42,500 | £25,000 |
| £750,000 | £30,000 | £67,500 | £37,500 |
| £1,000,000 | £43,750 | £93,750 | £50,000 |
Before and After October 2024
The additional property surcharge increased from 3% to 5% on 31 October 2024. Here is how much more second home buyers now pay.
| Property price | Before October 2024 (3%) | From October 2024 (5%) | Additional cost |
|---|---|---|---|
| £200,000 | £7,500 | £11,500 | +£4,000 |
| £300,000 | £14,000 | £20,000 | +£6,000 |
| £500,000 | £27,500 | £42,500 | +£15,000 |
Getting the Surcharge Back
If you paid the 5% surcharge because you bought a new main residence before selling your old one, you can reclaim it once you sell the previous property.
FAQs
How much is stamp duty on a second home in 2026?
Second home buyers pay standard SDLT rates plus a 5% surcharge on every band. On a £300,000 second home: 5% on £0-£125,000 (£6,250), 7% on £125,001-£250,000 (£8,750), 10% on £250,001-£300,000 (£5,000) = £20,000 total. A standard buyer pays just £5,000 on the same property - a difference of £15,000.
Can I reclaim the 5% surcharge after selling my previous home?
Yes, if you paid the surcharge because you were buying a new main residence before selling your old one. You must sell the previous residence within 3 years of completing the new purchase, and apply to HMRC within 12 months of the sale. The refund application uses HMRC's online service. Your solicitor can assist with the process.
Does the surcharge apply to properties under £40,000?
No. The additional property surcharge does not apply to purchases of £40,000 or less. Caravans, mobile homes and houseboats are also exempt from the surcharge regardless of price. These exemptions rarely apply to residential property purchases in practice.