Buying an extra property in England or Northern Ireland means a very different tax bill from a home mover’s. The rules for stamp duty second homes 2026 buyers are now settled: a 5 percentage-point surcharge stacks on top of every standard band, from the first pound above £40,000. But few buyers realise how steeply that surcharge compounds — on a typical £250,000 purchase it turns a £2,500 bill into £15,000. This guide lays out the 2026 rates, works through three calculations step by step, and covers the Budget position plus the different rules in Scotland and Wales.
How the 5% surcharge works
It is paid by the buyer on a slice-by-slice basis — each band applies only to the portion of the price within it — and is due within 14 days of completion, not exchange (Staymo, citing GOV.UK).
The standard residential bands for completions on or after 1 April 2025 are:
- Up to £125,000: 0%
- £125,001 to £250,000: 2%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Above £1.5 million: 12%
(GOV.UK residential property rates; confirmed by dutycalculatorstamp.co.uk, verified against HMRC 1 May 2026.)
Anyone buying an additional residential dwelling — a second home, holiday home or buy-to-let costing £40,000 or more — pays the higher rates: 5 percentage points above each standard band, i.e. 5%, 7%, 10%, 15% and 17% (GOV.UK higher rates guidance). The surcharge rose from 3% to 5% in October 2024 — more punishing than many older guides still suggest.
Worked examples: what the surcharge really costs
Example 1: a £250,000 second home
Standard rates (main residence):
- 0% on the first £125,000 = £0
- 2% on £125,001–£250,000 = 2% × £125,000 = £2,500
- Total: £2,500
Additional-dwelling rates (second home):
- 5% on the first £125,000 = £6,250
- 7% on £125,001–£250,000 = 7% × £125,000 = £8,750
- Total: £15,000
The surcharge adds £12,500 — six times the standard bill, including £6,250 on the first £125,000 slice that a main-residence buyer gets tax-free.
Example 2: a £400,000 buy-to-let
Standard rates:
- 0% on the first £125,000 = £0
- 2% on £125,001–£250,000 = £2,500
- 5% on £250,001–£400,000 = 5% × £150,000 = £7,500
- Total: £10,000
Additional-dwelling rates:
- 5% on the first £125,000 = £6,250
- 7% on £125,001–£250,000 = £8,750
- 10% on £250,001–£400,000 = 10% × £150,000 = £15,000
- Total: £30,000
That is an extra £20,000 of tax — the largest upfront cost of the investment after the deposit. Before committing, run your borrowing alongside the tax bill with the affordability calculator so the numbers reflect the real cash you need on completion day.
Example 3: a £180,000 second home
Standard rates:
- 2% on £125,001–£180,000 = 2% × £55,000 = £1,100
Additional-dwelling rates:
- 5% on the first £125,000 = £6,250
- 7% on £125,001–£180,000 = 7% × £55,000 = £3,850
- Total: £10,100
Even at a modest price, the surcharge adds roughly £9,000 — nearly a tenth of the property’s value.
Who pays it — and who doesn’t
You pay the higher rates if, at the end of the day of completion, you own another residential property worth £40,000 or more — including property anywhere else in the world. Joint buyers are treated as a unit, so if one of you already owns a home, the surcharge usually still applies to the whole purchase.
There is one major exception: if the new property replaces your only or main residence and you sell the old one, you pay standard rates. Complete on the new home first and you pay the higher rates — but can reclaim the surcharge once the previous main residence is sold, provided that happens within 36 months (easyProperty, 20 October 2026).
Non-UK residents face a further 2 percentage-point surcharge on top (dutycalculatorstamp.co.uk, verified against HMRC 1 May 2026).
Scotland and Wales play by different rules
SDLT covers England and Northern Ireland only. The devolved systems are more expensive for second-home buyers, not less:
- Scotland (LBTT): standard rates start with a 0% band up to £145,000 (bands unchanged since 1 April 2021, confirmed for 2026–27 in the Scottish Budget). But additional properties attract the Additional Dwelling Supplement: a flat 8% of the whole purchase price, not band by band, on properties of £40,000 or more. The ADS rose from 6% on 5 December 2024 and is reclaimable within 36 months when replacing a main residence (dutycalculatorstamp.co.uk, verified against Revenue Scotland 25 May 2026).
- Wales (LTT): higher residential rates apply band by band — 5%, 8.5%, 10%, 12.5%, 15% and 17% — in force since 11 December 2024 (easyProperty, 20 October 2026).
What the Autumn Budget 2026 changed
Nothing — at least for stamp duty. Chancellor John Healey’s first Budget, delivered on 28 October 2026, left SDLT completely untouched: no threshold changes and no change to the 5% surcharge (Skyline Mortgages, 29 October 2026; Mortgage Strategy, 28 October 2026). Reform had topped the industry’s wishlist and was ruled out ahead of Budget day (Ellis Brooke, October 2026). So the figures in this guide are the figures to plan around — no deadline to beat, no relief to wait for (Harrison’s Homes, October 2026).
To model the full picture — deposit, tax bill and monthly costs — the UK Home Buyer Toolkit brings the deposit planner and affordability checks into one place. This is general information, not tax advice: speak to a solicitor or tax adviser before you complete.
Frequently Asked Questions
Does the surcharge apply if I’m buying my first home?
No. First-time buyers pay nothing on the first £300,000 and 5% on £300,001–£500,000; above £500,000 the relief disappears entirely (Skyline Mortgages, 29 October 2026). The higher rates only apply to additional dwellings.
I’m just moving house, not investing — could I still get caught?
Only through timing. If you buy your new main home before selling the old one, you pay the higher rates at completion because you briefly own two properties. But if the sale completes within 36 months, you can reclaim the surcharge from HMRC (easyProperty, 20 October 2026) — so a slow chain costs you a large temporary outlay, not a permanent one.
I’m buying in Scotland or Wales — is it the same 5%?
No. Scotland’s 8% Additional Dwelling Supplement is charged on the entire purchase price, which makes it steeper than England’s 5% surcharge at most price points. Wales uses its own banded higher residential rates (5%–17%). Use the rules of the nation where the property sits, not where you live.
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