Key Points for Additional Property Buyers in 2025
- 5% surcharge on top of standard SDLT rates (increased from 3% on 31 October 2024)
- Applies to second homes, buy-to-let properties, holiday homes and any additional residential property
- Replacement of main residence is exempt — sell your old home within 36 months to avoid the surcharge or claim a refund
- Non-UK residents pay an additional 2% surcharge on top (7% total above standard rates)
- Companies buying residential property over £500,000 pay 17% flat rate
- Scotland ADS increased to 8% from 16 December 2024
- Wales higher rates add 4 percentage points to each LTT band
What Is the Additional Property Stamp Duty Surcharge?
The additional property surcharge is an extra amount of Stamp Duty Land Tax (SDLT) that buyers must pay when purchasing a residential property in England or Northern Ireland if they already own (or will own) another residential property. The surcharge was originally introduced at 3% in April 2016 to cool the buy-to-let and second home markets, and was increased to 5% for transactions completing on or after 31 October 2024 following the Autumn Budget announcement.
The surcharge is added to each band of the standard SDLT rates, meaning the total SDLT payable on an additional property is significantly higher than on a standard purchase. For example, the first £125,000 of a standard purchase attracts 0% SDLT, but on an additional property this band is charged at 5% (0% + 5% surcharge).
This surcharge represents one of the most significant costs of buying an additional property. On a £300,000 buy-to-let purchase, the surcharge alone adds £15,000 to the SDLT bill compared to a standard purchase, bringing the total from £2,500 to £17,500.
SDLT Rates for Additional Properties (From October 2024)
The following table shows the combined SDLT rates (standard rate + 5% surcharge) for additional property purchases completing on or after 31 October 2024.
| Up to £125,000 | 5% |
| £125,001 – £250,000 | 7% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1,500,000 | 15% |
| Over £1,500,000 | 17% |
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Who Pays the Additional Property Surcharge?
The 5% surcharge applies in a wider range of circumstances than many buyers realise. You will pay the surcharge if, at the end of the day of your purchase, you own two or more residential properties and are not replacing your main residence. Common scenarios include:
Second Homes and Holiday Homes
If you are keeping your current home and buying a second property for use as a holiday home, weekend retreat or pied-à-terre, the surcharge applies to the additional purchase. This is the case even if you plan to use the property only occasionally.
Buy-to-Let Investments
Purchasing a residential property to let out as a landlord always triggers the surcharge (unless it is your only property). This applies to single buy-to-let purchases, portfolio additions, and properties purchased through special purpose vehicles. The surcharge has made buy-to-let investing significantly more expensive upfront.
Buying Before Selling
If you buy a new main residence before selling your existing one, you will need to pay the surcharge at the point of purchase because you temporarily own two properties. However, you can claim a refund if you sell your previous main residence within 36 months (see the refund section below).
Properties Purchased by Companies
Companies (corporate bodies) purchasing residential property are subject to the surcharge. For properties costing more than £500,000, a flat rate of 17% applies to the entire purchase price (this combines the 15% ATED-linked rate with the 2% increase from October 2024). For properties costing £500,000 or less, the standard SDLT rates plus the 5% surcharge apply. Companies also face annual ATED charges.
Inherited Property
If you have inherited a share of a residential property, this can trigger the surcharge on your next purchase. However, there is an important exception: inherited interests of 50% or less are disregarded if they were acquired within the 36 months before the new purchase. If you inherited more than 50%, or the inheritance was more than 36 months ago, it counts towards the surcharge.
Non-UK Resident Surcharge
Since 1 April 2021, non-UK residents purchasing residential property in England and Northern Ireland pay an additional 2% surcharge on top of all other applicable SDLT rates. This surcharge applies whether you are buying a first property, a main residence, or an additional property.
For a non-UK resident buying an additional property, the surcharges stack:
- Standard SDLT rates, plus
- 5% additional property surcharge, plus
- 2% non-UK resident surcharge
This means the combined rates for a non-UK resident buying an additional property are:
| Up to £125,000 | 7% |
| £125,001 – £250,000 | 9% |
| £250,001 – £925,000 | 12% |
| £925,001 – £1,500,000 | 17% |
| Over £1,500,000 | 19% |
Who Counts as a Non-UK Resident?
For SDLT purposes, you are a non-UK resident if you were not present in the UK for at least 183 days during the 12 months ending with the date of the transaction. For joint purchases, if any buyer is non-UK resident, the surcharge applies to the entire transaction.
There is a potential refund mechanism: if you become UK resident within 12 months of the purchase (i.e. you spend 183 days or more in the UK in any continuous 365-day period that falls within 12 months after the purchase), you can claim a refund of the 2% surcharge.
Replacement of Main Residence Relief
The most important exemption from the additional property surcharge is the replacement of main residence relief. If you are selling your current main residence and buying a new one to live in as your main home, the surcharge does not apply — even if you own other properties such as buy-to-lets.
How It Works
To qualify for this relief, your transaction must meet all of the following conditions:
- The new property is intended to be your only or main residence
- You are disposing of (selling) your previous main residence
- The disposal completes on the same day as, or before, the new purchase — or within 36 months after
- You have lived in the previous property as your main residence at some point
Worked Examples: Standard vs Additional Property vs Non-UK Resident
These examples show SDLT at three price points comparing a standard UK resident buyer, a UK resident buying an additional property, and a non-UK resident buying an additional property. All rates are from 31 October 2024 onwards.
Example 1: Property Costing £300,000
| Band | Standard | Additional (+5%) | Non-UK Additional (+7%) |
|---|---|---|---|
| £0 – £125,000 | 0% = £0 | 5% = £6,250 | 7% = £8,750 |
| £125,001 – £250,000 | 2% = £2,500 | 7% = £8,750 | 9% = £11,250 |
| £250,001 – £300,000 | 5% = £2,500 | 10% = £5,000 | 12% = £6,000 |
| Total SDLT | £5,000 | £20,000 | £26,000 |
| Surcharge cost | — | £15,000 | £21,000 |
Example 2: Property Costing £500,000
| Band | Standard | Additional (+5%) | Non-UK Additional (+7%) |
|---|---|---|---|
| £0 – £125,000 | 0% = £0 | 5% = £6,250 | 7% = £8,750 |
| £125,001 – £250,000 | 2% = £2,500 | 7% = £8,750 | 9% = £11,250 |
| £250,001 – £500,000 | 5% = £12,500 | 10% = £25,000 | 12% = £30,000 |
| Total SDLT | £15,000 | £40,000 | £50,000 |
| Surcharge cost | — | £25,000 | £35,000 |
Example 3: Property Costing £750,000
| Band | Standard | Additional (+5%) | Non-UK Additional (+7%) |
|---|---|---|---|
| £0 – £125,000 | 0% = £0 | 5% = £6,250 | 7% = £8,750 |
| £125,001 – £250,000 | 2% = £2,500 | 7% = £8,750 | 9% = £11,250 |
| £250,001 – £750,000 | 5% = £25,000 | 10% = £50,000 | 12% = £60,000 |
| Total SDLT | £27,500 | £65,000 | £80,000 |
| Surcharge cost | — | £37,500 | £52,500 |
As these examples demonstrate, the surcharges add very substantial costs. On a £750,000 buy-to-let purchase, a UK resident pays £65,000 in total SDLT — £37,500 more than a standard buyer. A non-UK resident in the same scenario pays £80,000.
How to Claim a Refund of the Additional Property Surcharge
If you paid the additional property surcharge because you bought a new main residence before selling your previous one, you can claim a refund from HMRC once the sale completes. Here is the step-by-step process.
Eligibility for a Refund
- You purchased a new property intended as your main residence
- You paid the additional property surcharge because you had not yet sold your previous main residence
- You have since sold your previous main residence within 36 months of completing the new purchase
- The previous property was your main residence at some point before the new purchase
How to Apply
You must submit your refund claim within 12 months of the sale of your previous main residence, or within 12 months of the filing date of the SDLT return for the new purchase, whichever is later. Claims can be made:
- Online: Through HMRC's SDLT portal using the online amendment form
- By post: Write to HMRC Stamp Taxes, BX9 1HD, including your SDLT unique transaction reference number (UTRN), the date you sold your previous residence, and the sale price
HMRC aims to process refund claims within 15 working days of receiving a valid application. The refund will be paid directly to the bank account specified in your claim.
What If Exceptional Circumstances Prevented the Sale?
HMRC may extend the 36-month deadline in genuinely exceptional circumstances beyond the buyer's control, such as a government-imposed moratorium on property sales (as occurred during certain COVID-19 lockdown periods). You would need to make a case to HMRC demonstrating that the delay was outside your control. Difficulty in finding a buyer, slow conveyancing or negative equity are not considered exceptional circumstances.
Additional Property Surcharges in Scotland and Wales
Scotland and Wales have their own equivalents of the additional property surcharge, each with different rates and rules.
Scotland: LBTT Additional Dwelling Supplement (ADS)
Scotland charges an Additional Dwelling Supplement (ADS) on purchases of additional residential properties. The ADS rate increased to 8% on 16 December 2024 (from 6%). This is the highest additional property surcharge anywhere in the UK.
Key features of Scotland's ADS:
- Charged at 8% of the full purchase price (not just the portion above a threshold)
- Added on top of standard LBTT rates
- Refund available if previous main residence sold within 36 months
- Applies to all purchases of additional dwellings where the price is £40,000 or more
| Up to £145,000 | 8% (ADS only) |
| £145,001 – £250,000 | 10% (2% + 8%) |
| £250,001 – £325,000 | 13% (5% + 8%) |
| £325,001 – £750,000 | 18% (10% + 8%) |
| Over £750,000 | 20% (12% + 8%) |
Wales: LTT Higher Rates
Wales charges higher rates of Land Transaction Tax (LTT) on additional property purchases. The higher rates add 4 percentage points to each standard LTT band (not a flat surcharge on the total price).
| Up to £180,000 | 4% |
| £180,001 – £250,000 | 7.5% |
| £250,001 – £400,000 | 9% |
| £400,001 – £750,000 | 11.5% |
| £750,001 – £1,500,000 | 14% |
| Over £1,500,000 | 16% |
Wales also allows refunds of the higher rates if you sell your previous main residence within 36 months, similar to the SDLT and LBTT systems.
Additional Property Stamp Duty Calculator
Enter a property price to instantly compare SDLT for a standard buyer, an additional property buyer (UK resident), and a non-UK resident additional property buyer. Rates effective from 31 October 2024 for England and Northern Ireland.
Enter the property price in pounds without the pound sign
| Band | Std Rate | Std Tax | Add Rate | Add Tax | Non-UK Rate | Non-UK Tax |
|---|
Additional Property Stamp Duty: Frequently Asked Questions
From 31 October 2024, the additional property SDLT surcharge in England and Northern Ireland is 5% (increased from 3%). This is added on top of the standard SDLT rates for each band. For example, on a £300,000 second home, you would pay £20,000 in total SDLT (compared to £5,000 at standard rates). The surcharge adds 5 percentage points to every band, including the nil-rate band.
The additional property SDLT surcharge increased from 3% to 5% on 31 October 2024, following the Autumn Budget announcement. Transactions completing on or after this date are subject to the higher 5% surcharge. Transitional provisions were available for transactions where contracts were exchanged before 31 October 2024 and completed before 31 March 2025, allowing the old 3% rate to apply in some cases.
No. If you are selling your current main residence and buying a new one to replace it, the 5% surcharge does not apply, even if you own other properties such as buy-to-lets. However, if you buy your new main residence before selling the old one, you must pay the surcharge upfront and then claim a refund once the old property is sold — provided you sell it within 36 months of purchasing the new one.
To claim a refund, you must sell your previous main residence within 36 months of completing the purchase of your new main residence. You then have 12 months from the date of sale (or 12 months from the SDLT filing date for the new property, whichever is later) to apply. Claims are made online through HMRC's SDLT portal or by post. Include your SDLT unique transaction reference number, the date of sale and the sale price. HMRC aims to process refunds within 15 working days.
Yes. Non-UK residents pay an additional 2% surcharge on top of all other applicable rates. For a non-UK resident buying an additional property, the total surcharge is 7% above standard rates (5% additional property surcharge plus 2% non-UK resident surcharge). On a £500,000 property, a non-UK resident buying a second home would pay £50,000 in total SDLT, compared to £15,000 for a UK resident standard buyer.
Companies (corporate bodies) buying residential property above £500,000 pay a flat rate of 17% SDLT on the entire purchase price. For properties costing £500,000 or less, companies pay the standard SDLT rates plus the 5% additional property surcharge. Companies also face ongoing annual ATED charges for properties valued above £500,000. Non-UK resident companies pay an additional 2% on top of all other rates.
In Scotland, the Additional Dwelling Supplement (ADS) on LBTT increased to 8% from 16 December 2024 (previously 6%). The ADS is applied to the full purchase price as a flat surcharge, making it the highest additional property charge in the UK. In Wales, the higher rates of Land Transaction Tax (LTT) add 4 percentage points to each standard rate band. Both Scotland and Wales offer refund mechanisms if you sell your previous main residence within 36 months.