Stamp Duty on Second Homes UK: 2026/27 Rates, Rules and Refunds

If you buy a second home or additional residential property in England or Northern Ireland, you will normally pay Stamp Duty Land Tax at rates 5 percentage points above the standard residential rates. For current purchases, that means SDLT rates of 5%, 7%, 10%, 15% and 17%, depending on the portion of the purchase price falling within each band.

The higher rates normally apply where the property costs £40,000 or more and, at the end of the purchase, you own or part-own another qualifying residential property anywhere in the world.

Scotland and Wales have different systems. Scotland charges Land and Buildings Transaction Tax (LBTT) plus an 8% Additional Dwelling Supplement (ADS). Wales applies separate higher residential Land Transaction Tax (LTT) rates ranging from 5% to 17%.

These are the current rules for 2026/27. In England and Northern Ireland, the present SDLT bands have applied since 1 April 2025, following the increase in the additional-property surcharge from 3% to 5% on 31 October 2024.

Stamp Duty on a Second Home: Quick 2026/27 Overview

Where the property is	Property purchase tax	Current second-home treatment
England	Stamp Duty Land Tax (SDLT)	Standard residential rates plus 5 percentage points
Northern Ireland	Stamp Duty Land Tax (SDLT)	Standard residential rates plus 5 percentage points
Scotland	Land and Buildings Transaction Tax (LBTT)	Standard LBTT plus 8% ADS on the full price
Wales	Land Transaction Tax (LTT)	Separate higher residential rates of 5% to 17%
Non-UK resident buying in England/NI	SDLT	Potential additional 2% non-resident surcharge on top

The 2% non-resident surcharge applies only to qualifying residential transactions in England and Northern Ireland. It does not apply to Scottish LBTT or Welsh LTT.

Stamp Duty Rates for Second Homes in England and Northern Ireland

The current stamp duty rates for second homes are:

Portion of property price	Standard residential SDLT	Second home / additional property SDLT
Up to £125,000	0%	5%
£125,001 to £250,000	2%	7%
£250,001 to £925,000	5%	10%
£925,001 to £1.5 million	10%	15%
Above £1.5 million	12%	17%

HMRC applies the higher rate to each relevant slice of the purchase price.

A useful shortcut is that, for an ordinary additional-property purchase, the higher-rate surcharge adds 5% of the entire purchase price to the SDLT that would otherwise have been payable at normal residential rates.

For example, the additional-property element on a £500,000 second home is £25,000.

However, the actual SDLT bill is not simply “5% stamp duty”. The normal SDLT bands still apply underneath the surcharge.

How Much Is Stamp Duty on a Second Home?

For a second property in England or Northern Ireland:

Purchase price	Normal SDLT	Additional-property surcharge	Total second-home SDLT
£300,000	£5,000	£15,000	£20,000
£500,000	£15,000	£25,000	£40,000
£1,000,000	£43,750	£50,000	£93,750

These calculations assume:

• the purchaser is UK-resident for SDLT purposes;
• the higher rates for additional dwellings apply;
• no specific relief or exemption is available; and
• the purchase is an ordinary residential transaction.

Worked Example: Stamp Duty on a £300,000 Second Home

For an additional residential property costing £300,000:

First £125,000 at 5%

£125,000 × 5% = £6,250

Next £125,000 at 7%

£125,000 × 7% = £8,750

Remaining £50,000 at 10%

£50,000 × 10% = £5,000

Total SDLT: £20,000

HMRC uses the same £300,000 example in its current higher-rates guidance.

Worked Example: Stamp Duty on a £500,000 Second Home

For an additional property costing £500,000:

Band	Calculation	SDLT
First £125,000	£125,000 × 5%	£6,250
Next £125,000	£125,000 × 7%	£8,750
Remaining £250,000	£250,000 × 10%	£25,000
Total	£40,000

The equivalent normal residential SDLT would be £15,000, so owning an additional property increases the bill by £25,000.

Worked Example: Stamp Duty on a £1 Million Second Home

For a £1 million additional property:

Band	Calculation	SDLT
First £125,000	5%	£6,250
£125,001–£250,000	7%	£8,750
£250,001–£925,000	10%	£67,500
£925,001–£1,000,000	15%	£11,250
Total SDLT	£93,750

Normal residential SDLT would be £43,750.

The additional-property surcharge therefore increases the tax by £50,000.

What Counts as a Second Home for Stamp Duty?

For SDLT purposes, the term “second home” is broader than a holiday property.

The higher rates can apply when you buy a residential property for £40,000 or more and, at the end of the transaction, you own another qualifying residential property worth at least £40,000.

That can include:

• your existing home;
• a buy-to-let property;
• a holiday home;
• an overseas property;
• a share of another property;
• certain inherited property interests;
• residential property held through particular trusts.

HMRC considers residential property ownership anywhere in the world, not only UK property.

Does Overseas Property Count?

Yes.

If you own a house, apartment or other qualifying residential interest overseas, it can count when deciding whether your UK purchase attracts the higher SDLT rates.

For example, suppose you live in rented accommodation in London but own a €200,000 apartment in Spain.

If you then buy a £400,000 home in England, the Spanish property may mean the English purchase is an additional dwelling even though it is the first property you have bought in the UK.

Whether you intend to make the English property your main home does not by itself remove the surcharge.

The important question is whether you are replacing a previous main residence, not simply whether the new property will become your main residence.

Does Joint Ownership Count?

Yes.

A share in another residential property can count where the market value of your interest is £40,000 or more.

HMRC ignores mortgages when valuing that interest.

For example, if you own 20% of a property worth £150,000, your interest is worth £30,000. On its own, that interest would not meet the £40,000 test.

If your 50% share is worth £75,000, it can count.

Several separate property interests each worth less than £40,000 are not simply added together to reach the threshold. Each dwelling interest is considered separately.

What If I Buy With Someone Who Already Owns a Property?

This is an important trap.

Where two or more people buy a property together, if the higher rates apply to any one purchaser, they normally apply to the entire transaction.

For example:

• Sarah owns no property.
• James owns a buy-to-let flat.
• Sarah and James jointly buy a £400,000 home.

James’s existing property may cause the entire £400,000 purchase to be charged at the additional-property rates.

HMRC applies this rule to joint purchasers and also has special rules for married couples and civil partners.

How Are Married Couples and Civil Partners Treated?

Married couples and civil partners who are living together are normally treated as a unit for these rules.

HMRC states that the rules apply to both spouses as if they were purchasing together, even where only one person’s name appears on the new property.

If either spouse would individually trigger the higher rates, the transaction can be subject to them as a whole.

An exception can apply where the couple are permanently separated.

Second-Time Buyer Stamp Duty: Do Second-Time Buyers Always Pay More?

No. Being a second-time buyer does not automatically mean you pay second-home stamp duty.

What matters is your property ownership position and whether you are replacing your main residence.

For example:

Scenario 1 — previous home already sold

You sell your only home and then buy another main residence.

You normally pay the standard SDLT rates, not the additional-property rates.

Scenario 2 — old home has not yet sold

You complete on your new home while still owning the old one.

You will normally pay the higher rates initially, but may be entitled to reclaim the surcharge if the old main residence is sold within the permitted 36-month period.

Scenario 3 — you retain your old home as a rental

You buy a new main residence but keep your former home permanently as a buy-to-let.

Unless another exception applies, the higher rates normally apply.

So searches for “stamp duty for second time buyers” should not be confused with “stamp duty on a second property”.

Replacing Your Main Residence: The Key Second-Home SDLT Exception

The most important exception is the replacement of a main residence.

You can own more than one property and still avoid the higher SDLT rates on a new home where you genuinely replace your previous main residence.

For example, suppose you own:

• your main home; and
• a separate buy-to-let flat.

You sell your main home and buy another home to live in, while keeping the rental flat.

The fact that you still own the rental property does not necessarily trigger the higher rates because you have replaced your main residence.

HMRC’s current guidance confirms that the higher rates do not apply where the new property replaces your main residence and the relevant disposal conditions are satisfied.

What Is the 36-Month Rule?

There are two common situations.

You sell your old main home before buying the new one

Your former main residence generally needs to have been sold within the relevant 36-month replacement period.

You buy before selling

If the old main residence has not been sold when you complete on the new home, the higher SDLT rates normally apply immediately.

If you dispose of the old main residence within three years, you can generally claim a refund of the additional SDLT, assuming the other conditions are satisfied.

How to Reclaim Stamp Duty on a Second Home

If you bought a new main residence before selling your former one, you may have paid the higher rates even though your intention was simply to move home.

You can usually reclaim the higher-rate element where:

1. the new property becomes your main residence;
2. you dispose of your previous main residence within three years;
3. neither you nor your spouse retains a disqualifying interest in the former home; and
4. the higher rates do not continue to apply for another reason.

HMRC allows the claim after the old main home has been sold or otherwise qualifyingly disposed of.

Stamp Duty Refund Deadline

For modern transactions, HMRC must generally receive the refund request by the later of:

• 12 months after the sale of the previous main residence, or
• 12 months after the filing date of the SDLT return for the new residence.

Missing this deadline can put the refund at risk.

What Information Do You Need for an SDLT Refund?

HMRC may require details including:

• purchaser information;
• address of the new property;
• effective purchase date;
• SDLT Unique Transaction Reference Number;
• details of the previous main residence;
• sale date;
• amount of SDLT originally paid;
• amount being reclaimed;
• bank details for the repayment.

A solicitor or tax adviser can also make the claim where properly authorised.

What If It Takes More Than Three Years to Sell the Old Home?

HMRC can accept a later disposal in limited exceptional circumstances.

Examples given by HMRC include circumstances such as:

• government restrictions preventing a sale; or
• action by a public authority preventing the property from being sold.

Ordinary property-market difficulties generally do not qualify.

HMRC specifically says matters such as failing to find a buyer at the desired price, delays agreeing terms or a broken property chain are normally not exceptional circumstances.

Second Home Stamp Duty Exemptions and Exceptions

There is no general loophole allowing a normal second home to escape the additional rates simply by changing the mortgage or ownership structure.

There are, however, genuine statutory exceptions.

Property Costing Less Than £40,000

The higher rates normally apply where the purchased residential property costs £40,000 or more.

Therefore, a qualifying purchase below £40,000 falls outside these higher-rate rules.

Be careful with the wording: £40,000 itself is not “under £40,000”.

Caravans, Mobile Homes and Houseboats

Moveable property such as:

• caravans;
• mobile homes; and
• houseboats

does not normally fall within the additional-dwelling rules unless it has effectively become a permanent fixture and falls within the relevant land rules.

Mixed Residential and Commercial Property

A genuine mixed-use purchase can be subject to the non-residential SDLT rates rather than residential higher rates.

A common example is a shop purchased together with a self-contained flat above it.

However, simply having a home office, large garden, paddock or outbuilding does not automatically make a property mixed-use.

The classification depends on the facts and actual nature of the land at completion. HMRC distinguishes between rooms within a dwelling used for work and genuinely separate commercial premises.

Transfers Between Spouses

A transfer of an interest in residential property to a spouse can fall outside the additional-property surcharge where no other person is involved in the transfer, although ordinary SDLT can still need consideration where there is chargeable consideration such as transferred mortgage debt.

Increasing Your Share in Your Main Home

Specific rules can exclude the higher rates when someone increases an existing interest in a property where:

• they already own at least 25%;
• the property has been their only or main home for the previous three years; and
• additional conditions are satisfied.

This often requires transaction-specific advice.

Does an Inherited Property Count as a Second Home?

Potentially—but there is an important exception.

An inherited residential interest can normally be disregarded for higher-rate SDLT purposes for three years where:

• the interest was acquired through inheritance; and
• the beneficiary’s interest, together with certain interests held by their spouse or civil partner, does not exceed 50% of the property.

HMRC gives the example of two brothers inheriting a house equally. A 50% inherited share can be disregarded for this purpose when the relevant conditions are satisfied and the new property is purchased within the three-year period.

After the three-year period, or where the inherited interest exceeds the permitted level, it can affect the SDLT calculation.

Simply receiving property under a will does not itself trigger SDLT, but owning the inherited property can affect a later purchase.

Do Annexes Trigger Second-Home Stamp Duty?

Not automatically.

A property containing a main house and an annex may technically contain more than one dwelling.

However, special subsidiary dwelling rules can treat the purchase as though only one dwelling were acquired when:

• the subsidiary dwelling is in the same building as, or within the grounds of, the main dwelling; and
• the principal dwelling accounts for at least two-thirds of the total property value.

If those conditions are satisfied, the existence of the annex alone does not necessarily cause higher-rate SDLT.

This is not a general “granny annex exemption”.

If the purchaser already owns another qualifying property, the ordinary additional-dwelling rules can still apply.

Does an Uninhabitable Property Avoid Second-Home Stamp Duty?

Do not assume so.

HMRC now expressly warns that there is no general SDLT relief or lower rate simply because a property is described as “uninhabitable”.

A property needing substantial renovation can still be a dwelling for SDLT purposes.

HMRC gives examples of problems that do not normally stop a building being a dwelling, including:

• damaged roofs;
• missing kitchen or bathroom facilities during renovation;
• defective wiring;
• damp;
• asbestos;
• flood damage;
• structural defects capable of repair;
• broken heating systems.

Only in comparatively limited circumstances will a building have deteriorated so far that it is no longer suitable for use as a dwelling.

The Court of Appeal’s 2025 decision in Mudan reinforced HMRC’s restrictive approach.

Property buyers should therefore be extremely cautious about SDLT refund firms promising refunds purely because a property needed major work.

Buying a Second Home Through a Limited Company

Using a limited company does not avoid the additional-property SDLT rates.

For England and Northern Ireland, companies generally pay the higher residential rates when buying a dwelling costing £40,000 or more, even if it is the company’s first residential property.

This is particularly relevant for buy-to-let investors.

A property company’s purchase does not qualify for standard residential rates merely because the company’s portfolio previously contained no properties.

The 17% Corporate SDLT Rate

A separate rule can impose a flat 17% SDLT rate on the entire purchase price where certain companies and other non-natural persons acquire an individual residential property costing more than £500,000.

However, relief from that 17% rate can be available for qualifying commercial activities, including certain:

• property rental businesses;
• property development businesses;
• property trading businesses;
• employee accommodation arrangements.

Where relief applies, the transaction can instead fall back into the ordinary higher-rate SDLT regime.

This is why the question should not be:

“Can I avoid stamp duty by buying through a company?”

It should be:

“What is the overall tax position of buying personally versus through a company?”

That analysis may include:

• SDLT;
• Corporation Tax;
• mortgage interest treatment;
• Income Tax;
• dividend tax;
• Capital Gains Tax;
• financing costs;
• succession planning.

For property investors, AccFirm can review the tax structure before contracts are exchanged rather than after the SDLT liability has already been fixed.

Annual Tax on Enveloped Dwellings

Companies acquiring higher-value residential property should also consider Annual Tax on Enveloped Dwellings (ATED).

ATED can apply to certain company-owned UK residential properties valued above £500,000, although important reliefs exist for genuine commercial property rental and development businesses.

For 2026/27, ATED annual charges start at £4,600 for relevant properties valued above £500,000 and up to £1 million.

This is separate from SDLT.

Multiple Dwellings Relief Has Been Abolished in England and Northern Ireland

Another outdated area of many property tax guides is Multiple Dwellings Relief (MDR).

MDR was abolished for most England and Northern Ireland transactions completing or substantially performed on or after 1 June 2024, subject to limited transitional rules for older contracts.

This matters when buying:

• blocks of flats;
• houses with separate accommodation;
• property portfolios;
• several dwellings in one transaction.

However, where six or more dwellings are acquired in a single transaction, the transaction is generally treated as non-residential for SDLT purposes under separate rules.

Do not rely on an older online article that still recommends MDR as a routine SDLT saving strategy in England or Northern Ireland.

Stamp Duty on Second Homes for Non-UK Residents

Non-UK residents buying residential property in England or Northern Ireland can face a further 2 percentage point surcharge.

Where both the additional-property rates and non-resident surcharge apply, the rates become:

Property band	UK-resident second-home rate	Non-resident additional-property rate
Up to £125,000	5%	7%
£125,001–£250,000	7%	9%
£250,001–£925,000	10%	12%
£925,001–£1.5m	15%	17%
Above £1.5m	17%	19%

These rates are confirmed in HMRC’s current rates tables.

SDLT Has Its Own Residence Test

Do not simply use your Income Tax residence status.

HMRC applies a special SDLT test.

An individual is generally treated as non-UK resident for the transaction where they were not present in the UK for at least 183 days during the 12 months preceding the purchase, subject to special rules for spouses, companies, partnerships and trusts.

An individual who initially pays the surcharge may later qualify for a refund if they satisfy the required UK presence test during an eligible 365-day period following the transaction.

Stamp Duty on Second Homes in Scotland

Scotland does not use SDLT.

Residential property purchases are subject to Land and Buildings Transaction Tax (LBTT).

An additional dwelling can also attract the Additional Dwelling Supplement (ADS).

For 2026/27, ADS is 8% of the total purchase price for qualifying additional dwellings costing £40,000 or more.

Scotland Second-Home Rates 2026/27

Normal residential LBTT rates are:

Portion of purchase price	Standard LBTT
Up to £145,000	0%
£145,001–£250,000	2%
£250,001–£325,000	5%
£325,001–£750,000	10%
Above £750,000	12%

For an additional dwelling, add 8% ADS to the entire purchase price.

This means the practical combined marginal rates are broadly:

Band	LBTT + ADS
Up to £145,000	8%
£145,001–£250,000	10%
£250,001–£325,000	13%
£325,001–£750,000	18%
Above £750,000	20%

Scotland Example: £300,000 Second Home

Standard LBTT:

• £0 on first £145,000;
• £2,100 on £145,001–£250,000;
• £2,500 on £250,001–£300,000.

Standard LBTT = £4,600

ADS:

£300,000 × 8% = £24,000

Total Scottish tax = £28,600

Scotland’s 36-Month Refund Rule

For qualifying transactions from 1 April 2024, Revenue Scotland generally allows an ADS repayment where the previous main residence is disposed of within 36 months and the detailed occupation and replacement conditions are satisfied.

Scottish joint-purchaser rules differ in some respects from the equivalent England rules, so the conditions should be checked separately rather than assuming the SDLT legislation applies UK-wide.

Stamp Duty on Second Homes in Wales

Wales uses Land Transaction Tax (LTT) rather than SDLT.

It does not simply add one flat percentage surcharge to the standard Welsh rates.

Instead, separate higher residential rates apply.

Current rates for additional residential purchases are:

Portion of purchase price	Higher residential LTT
Up to £180,000	5%
£180,001–£250,000	8.5%
£250,001–£400,000	10%
£400,001–£750,000	12.5%
£750,001–£1.5 million	15%
Above £1.5 million	17%

These rates have applied since 11 December 2024 and remain current in 2026.

Wales Example: £300,000 Second Home

The calculation is:

• £180,000 × 5% = £9,000
• £70,000 × 8.5% = £5,950
• £50,000 × 10% = £5,000

Total LTT = £19,950

Welsh Main-Residence Refund

If you buy your new main home before selling the previous main residence, higher rates can initially apply.

You can generally claim a refund where you sell the former main residence within three years, subject to the Welsh conditions.

Wales also retains some reliefs and rules that differ significantly from England, including its own approach to Multiple Dwellings Relief.

£300,000, £500,000 and £1 Million Second Homes Across the UK

For a straightforward additional residential property, approximate transaction tax is:

Property price	England / NI SDLT	Scotland LBTT + ADS	Wales higher-rate LTT
£300,000	£20,000	£28,600	£19,950
£500,000	£40,000	£63,350	£42,450
£1,000,000	£93,750	£158,350	£111,200

This table illustrates why a generic online “UK stamp duty calculator” can produce the wrong answer if it does not ask where the property is located.

Can You Legally Avoid Stamp Duty on a Second Home?

There is no legitimate strategy that simply makes an ordinary second-home purchase exempt by moving names around after the decision has been made.

Valid planning means understanding whether the transaction genuinely falls within a different statutory treatment.

Possible situations include:

• completing the sale of your previous main residence before buying its replacement;
• buying qualifying property below £40,000;
• genuine mixed-use property;
• qualifying spouse transfers;
• subsidiary dwellings;
• specific inherited-property rules;
• acquisitions of six or more dwellings in one transaction;
• corporate relief from the flat 17% rate where statutory conditions are satisfied.

What you should not do is structure ownership artificially purely on the assumption that HMRC will ignore beneficial ownership.

The SDLT rules examine the actual legal and beneficial interests created by the transaction.

Does Increasing the Mortgage Reduce Stamp Duty?

No.

Taking a larger mortgage does not reduce SDLT on a normal purchase.

SDLT is based primarily on the chargeable consideration for the property, not on the size of your deposit or mortgage.

Buying a £500,000 second home with:

• £500,000 cash;
• a £250,000 mortgage; or
• a £450,000 mortgage

does not, by itself, change the £500,000 purchase price used for the SDLT calculation.

Mortgage liabilities can become relevant in certain transfers of equity and gifts of property, but that is a different issue.

Does First-Time Buyer Relief Apply to a Second Home?

No.

First-Time Buyers’ Relief is intended for qualifying individuals buying their first property as their main residence.

A person who already owns or has previously owned a residential property generally cannot claim first-time buyer relief merely because their current purchase is their first UK property or first property bought jointly with a partner.

Inherited and overseas ownership can also affect first-time buyer status.

When Is Stamp Duty Paid?

For England and Northern Ireland, the SDLT return normally needs to be filed with HMRC within 14 days of the effective date, which is usually completion.

The tax is also payable within the applicable filing period.

In practice, your solicitor or conveyancer will normally:

• calculate SDLT;
• collect the money from you;
• submit the SDLT return; and
• pay HMRC after completion.

The legal responsibility for the accuracy of the transaction remains important even where the filing is handled by a solicitor.

Stamp Duty Planning Before Buying a Second Property

SDLT should be reviewed before exchange of contracts, particularly where the ownership position is complex.

Important questions include:

Question	Why it matters
Do you own property overseas?	It may trigger additional-property SDLT
Are you buying jointly?	One buyer can cause the whole purchase to be charged at higher rates
Are you married or in a civil partnership?	Spouse ownership can affect your position
Have you sold a former main residence?	The replacement rules may apply
Have you inherited property?	Special three-year/50% rules may apply
Does the property contain an annex?	Subsidiary dwelling rules may matter
Is part genuinely commercial?	Non-residential rates may potentially apply
Are you using a limited company?	Companies normally pay higher rates
Is the buyer non-UK resident?	An additional 2% surcharge may apply in England/NI
Are six or more dwellings being bought together?	Non-residential treatment may apply

An SDLT mistake can be expensive because the tax is payable immediately on acquisition.

Frequently Asked Questions

What is the stamp duty on a second home in 2026?

In England and Northern Ireland, an ordinary second-home purchase is generally charged at 5%, 7%, 10%, 15% and 17% across the relevant price bands.

The rates are 5 percentage points higher than the normal residential SDLT rates.

How much is stamp duty on a second home?

It depends on the purchase price.

For a UK-resident buying an additional property in England or Northern Ireland:

• a £300,000 second home produces £20,000 SDLT;
• a £500,000 second home produces £40,000 SDLT;
• a £1 million second home produces £93,750 SDLT.

What is stamp duty on a second property?

In England and Northern Ireland, buying a second or additional residential property normally means paying SDLT at higher rates where the purchase costs £40,000 or more and you already own another qualifying residential property.

Is second-property stamp duty an extra 5%?

In England and Northern Ireland, the additional-property rates are 5 percentage points above the standard residential rates.

Because all residential bands increase by five percentage points, the additional element normally equals 5% of the property’s entire purchase price.

Do second-time buyers pay higher stamp duty?

Not automatically.

If you have sold your previous home and are replacing it with a new main residence, standard SDLT rates can apply even though you are a second-time buyer.

The higher rates are primarily about owning additional property, not simply having purchased property previously.

Do I pay stamp duty if my second property costs less than £40,000?

The higher-rate additional-dwelling rules generally apply where the property costs £40,000 or more.

A purchase below £40,000 therefore normally falls outside those higher-rate rules.

Does a foreign property count as a second property?

Yes.

Qualifying residential property owned anywhere in the world can count when HMRC determines whether the higher rates apply.

Does my spouse’s property count?

Usually yes where you are married or in a civil partnership and living together.

HMRC generally treats spouses and civil partners as a unit for the additional-property rules.

Does inherited property count for second-home stamp duty?

It can.

However, a qualifying inherited interest of 50% or less can be disregarded for a three-year period where the statutory conditions are met.

Can I reclaim second-home stamp duty?

If you paid the higher rates because you bought a replacement main residence before selling your former one, you may be able to reclaim the surcharge if you dispose of the previous main residence within three years.

A separate claim deadline also applies.

How long do I have to claim an SDLT refund?

For a previous main residence sold after 28 October 2018, the claim generally needs to reach HMRC within 12 months of whichever is later: the sale or the filing date of the SDLT return for the new residence.

Can I avoid second-home stamp duty by buying through a limited company?

No.

Companies generally pay the higher residential SDLT rates on residential property costing £40,000 or more.

Certain company acquisitions above £500,000 can instead attract a flat 17% rate, although qualifying commercial property businesses may obtain relief from that particular charge.

What stamp duty does a non-UK resident pay on a second home?

For qualifying England and Northern Ireland purchases, the normal 2% non-resident surcharge can sit on top of the additional-property rates.

That produces marginal rates of 7%, 9%, 12%, 17% and 19%.

What is the second-home stamp duty rate in Scotland?

Scotland charges ordinary LBTT plus an 8% Additional Dwelling Supplement on qualifying additional homes.

The 8% ADS applies to the full purchase price.

What is the second-home stamp duty rate in Wales?

Wales uses higher residential LTT rates rather than SDLT.

Current higher rates range from 5% to 17%, depending on the portion of the purchase price.

Does a buy-to-let property count as a second home?

Usually yes.

If you already own a home and buy another residential property as a buy-to-let investment, the higher additional-property rates normally apply.

Does an annex automatically mean higher stamp duty?

No.

A qualifying subsidiary annex can be treated as part of the principal dwelling for the additional-property test where the relevant conditions are satisfied, including the two-thirds value test.

Is an uninhabitable house exempt from second-home SDLT?

Not automatically.

HMRC specifically states there is no general SDLT relief for “uninhabitable” property. A house requiring major repairs may still legally be a dwelling.

Get Expert Advice Before Buying an Additional Property

The difference between standard SDLT and additional-property rates can easily run into tens of thousands of pounds.

The rules become particularly important where you:

• own overseas property;
• are buying with another person;
• have recently inherited property;
• are replacing a main residence;
• are purchasing through a limited company;
• are buying a property portfolio;
• are non-UK resident;
• are purchasing mixed-use property;
• believe an annex or unusual property configuration affects the tax treatment.

At AccFirm, our UK tax advisers support property investors, landlords, company owners and individuals with SDLT and wider property-tax planning.

For landlords and investors, SDLT should also be considered alongside the future Income Tax, Corporation Tax and Capital Gains Tax consequences of the ownership structure. If the property may later become or has previously been your main home, our guidance on Private Residence Relief and Capital Gains Tax can also help explain the CGT position.

Getting the structure reviewed before exchange and completion is usually far more useful than trying to correct an avoidable SDLT mistake afterwards.