Guide · tax year 2026/27
Stamp duty on second homes and buy-to-let
How the higher rates of stamp duty work for additional properties, and when they do not apply.
If you buy a home in England or Northern Ireland and will own more than one, you usually pay the higher rates of Stamp Duty Land Tax (SDLT). This applies to second homes and buy-to-let property, and sometimes to people moving home. This guide explains how the higher rates work and when they do not apply, using 2026/27 rules.
How the higher rates work
The higher rates add 5% on top of every standard band, including the first one where standard buyers pay nothing (GOV.UK: buying an additional residential property):
| Part of the price | Rate |
|---|---|
| Up to £125,000 | 5% |
| Over £125,000 up to £250,000 | 7% |
| Over £250,000 up to £925,000 | 10% |
| Over £925,000 up to £1,500,000 | 15% |
| Over £1,500,000 | 17% |
On a £300,000 property, the higher rates come to £20,000, compared with £5,000 for someone who will own only that home.
When the higher rates apply
In broad terms, GOV.UK says you must pay the higher rates when you buy a residential property for £40,000 or more, if it will not be the only residential property worth £40,000 or more that you own, anywhere in the world, and you have not sold or given away your previous main home. Some points that surprise people:
- Homes abroad count. A property you own anywhere in the world can make the purchase a higher rates one.
- Married couples and civil partners count together. If either of you would have to pay the higher rates, you both do, unless you are permanently separated.
- Small purchases are exempt. A purchase under £40,000 does not pay the higher rates, and homes worth less than that are not counted as homes you own.
Replacing your main home
If you are moving home, what matters is the order of the sale and the purchase:
- You sold your old main home first, or on the same day you buy the new one: the higher rates do not apply.
- You buy the new home before selling the old one: you pay the higher rates, but you can apply for a refund of the extra if you sell or give away your previous main home within 3 years of buying the new one.
The refund has its own time limit, so check GOV.UK when you sell. You cannot get a refund if you or your spouse still own part of the previous home.
First-time buyers and the higher rates
First-time buyer relief cannot be claimed on a higher rates purchase (Finance Act 2003, Schedule 6ZA). For example, if you have never owned a home but buy with a spouse who already owns one, you are treated together, so the purchase pays the higher rates and gets no first-time buyer relief. See stamp duty for first-time buyers.
Paying and rounding
The tax is rounded down to the nearest pound (HMRC manual SDLTM00050). You must send a return and pay within 14 days of completion; a solicitor or conveyancer usually does this for you (GOV.UK).
What this guide does not cover
- Companies, which have their own rules for residential property.
- The further 2% surcharge for buyers who are not UK residents (GOV.UK).
- Property in Scotland or Wales, which have their own taxes.
The extra cost at different prices
Because the surcharge is added to every band, the extra cost is the surcharge rate times the whole price. Compare the higher rates with the standard rates:
| Price | Higher rates | Standard rates | Extra |
|---|---|---|---|
| £200,000 | £11,500 | £1,500 | £10,000 |
| £400,000 | £30,000 | £10,000 | £20,000 |
| £600,000 | £50,000 | £20,000 | £30,000 |
If you are moving home and buy before you sell, the "Extra" column is roughly what you would pay up front and may be able to claim back if you then sell your old main home in time and meet the other conditions. That can make a big difference to the cash you need on completion, so it may be worth discussing the order of a sale and purchase with your conveyancer.
Companies
Companies must pay the higher rates for any residential property they buy if the property is £40,000 or more, according to GOV.UK's guidance on additional properties. There are other rules for companies buying expensive homes, which this guide and our calculator do not cover. If you are thinking of buying through a company, get advice for your own situation.
Before you buy
Because the higher rates depend on everything you and your spouse or civil partner own, it can help to list every residential property, or share of one, before you make an offer, including any abroad. Your conveyancer will usually ask about this when preparing the return.
Common questions
I inherited a share of a house. Does that count?
It can. The rules count property you own or part own, and some inherited shares are treated differently. GOV.UK's guidance on additional properties has the details.
Where can I work out the figure?
Use our stamp duty calculator, choosing "additional property". It shows the standard and first-time buyer figures for the same price too.
General information for the 2026/27 tax year, not financial or tax advice. We are not HMRC. Found a mistake? See our corrections policy.