Work out Stamp Duty on a buy-to-let or second home in England and Northern Ireland, with the 5% surcharge on every band and the extra over a main home.
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against HMRC and GOV.UK 2026/27 rates
Rates verified: 28 September 2026
Disclaimer
This calculator is for guidance only. It is not financial or tax advice: check anything you rely on against the official source or a qualified adviser. Rates and figures come from HMRC and GOV.UK and are reviewed for the 2026/27 tax year. Everything is calculated in your browser; nothing you enter is sent to our servers.
How It Works
Buyers of additional residential property in England and Northern Ireland have paid a 5% surcharge on top of standard SDLT since October 2024, when the rate rose from 3%. It applies to second homes, holiday homes, buy-to-lets and places bought for relatives, and it is triggered by owning or part-owning any other residential property anywhere in the world on the day you complete. Companies and trusts buying residential property pay the same higher rates, from £40,000 upwards, with no nil-rate band.
The surcharge is not bolted onto the top slice, it runs from the first pound, so the combined table starts at 5% on the first £125,000, then 7% from £125,001 to £250,000, 10% from £250,001 to £925,000, 15% from £925,001 to £1.5m and 17% above £1.5m. There is no tax-free band left at the bottom for an additional purchase, which is what makes the charge so heavy at the cheaper end of the market.
The effect on a mid-priced purchase is easy to underestimate. On a £300,000 second home bought by someone who already owns a main residence, the standard element comes to £5,000, being 2% on the slice between £125k and £250k and 5% on the slice from £250k to £300k. The 5% surcharge on the whole £300,000 adds £15,000, giving £20,000 altogether, or 6.7% of the price. First-time buyer relief is no help, because it is not available on an additional property.
The calculator sets the two figures side by side, the total SDLT including the surcharge and what the same purchase would cost at standard rates, and shows the surcharge on its own. On a £350,000 purchase that is £25,000 against £7,500, with £17,500 of surcharge, which is the number worth carrying into any yield calculation before you commit.
Replacing a main residence is the usual way out. If you complete on the new home before the old one sells, which is common when a chain breaks, you pay the surcharge upfront and reclaim it once the old property is sold, provided that happens within 36 months. The refund claim goes in through gov.uk within 12 months of the sale, so it is worth putting a note in the diary at the point of sale rather than leaving it to be picked up later.
Who counts as an owner catches people out. If you live with an unmarried partner who owns a property and you buy a home in your sole name, their ownership is ignored and no surcharge arises. Buy jointly with the same partner and the surcharge applies to the full purchase price. Married couples and civil partners are treated as a single unit, so if either of you owns residential property, a joint purchase attracts the surcharge.
Example: £350,000 second home purchase
- £0–£125,000 at 5% (0% + 5% surcharge) = £6,250
- £125,001–£250,000 at 7% (2% + 5%) = £8,750
- £250,001–£350,000 at 10% (5% + 5%) = £10,000
- Total SDLT: £25,000 (effective rate: 7.14%)
- Standard rates would be £7,500, surcharge adds £17,500
Frequently Asked Questions
- Do I pay the 5% surcharge if I already own a home?
- Since October 2024, buying an additional home in England or Northern Ireland adds a 5% surcharge on top of standard SDLT, up from 3% before. It covers second homes, holiday homes, buy-to-lets and property bought for relatives, and it bites even when the home you already own is held jointly or sits outside the UK. Companies and trusts pay the higher rates too, from £40,000 with no nil-rate band.
- Can I get the 5% surcharge back if I sell my old home?
- Yes, if the purchase replaced your main residence. Where you complete on the new home before the old one has sold, the surcharge is payable upfront and refundable once you sell the previous main residence within 36 months. The claim is made through gov.uk and has to reach HMRC within 12 months of that sale. On a £350,000 purchase the sum at stake is £17,500, so the deadline is worth watching.
- Does my partner's property count if we buy together?
- It depends on whether you are married. An unmarried partner's property is ignored if you buy the new home in your sole name, so no surcharge arises. Buy it jointly with them and the surcharge applies to the whole price. Married couples and civil partners are treated as one unit for this test, so if either of you owns residential property anywhere, a joint purchase attracts the 5% surcharge.
- Can first-time buyer relief be used on a buy-to-let?
- No. First-time buyer relief is not available on an additional property purchase, so there is nothing to offset the surcharge. A £300,000 second home bought by someone who already owns a main residence attracts £20,000 of SDLT, about 6.7% of the price, made up of £5,000 at standard rates and £15,000 of surcharge charged on the whole price from the first pound.