How much stamp duty will I pay on a second home in England or Northern Ireland?
England and Northern Ireland charge Stamp Duty Land Tax (SDLT). If you will own two or more residential properties worldwide at the end of the day of completion, you pay the standard SDLT bands plus a 5 percentage point surcharge on every band, for purchases over £40,000. The surcharge rose from 3% to 5% for completions on or after 31 October 2024, and from 1 April 2025 the temporary raised nil-rate thresholds that had applied since September 2022 reverted to their earlier, lower permanent levels.
Standard residential SDLT bands, effective from 1 April 2025:
| Band | Standard rate | Additional-property rate (+5pp) |
|---|---|---|
| £0 to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 15% |
| Above £1,500,000 | 12% | 17% |
The surcharge applies from the first pound once the property costs more than £40,000, so there is no nil-rate slice left once the higher rates apply. As an illustrative example only: a £350,000 second home in England, bought by a UK-resident buyer who already owns a home, would fall across the 5%, 7% and 10% slices of the additional-property table above, not the standard table.
What if I am buying in Scotland?
Scotland uses Land and Buildings Transaction Tax (LBTT) instead of SDLT, and applies the Additional Dwelling Supplement (ADS) to a second or additional residential property. Unlike the English surcharge, ADS is a flat percentage of the whole purchase price, not added band by band. ADS rose to 8% for transactions with an effective date on or after 5 December 2024, up from 6% previously, and applies on purchases above £40,000 where the buyer will own two or more residential properties worldwide after completion.
Standard LBTT residential bands (re-confirm each Scottish Budget, typically announced in December or January):
| Band | LBTT rate |
|---|---|
| £0 to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Above £750,000 | 12% |
ADS is added on top as a flat 8% of the full price. So on a £350,000 second home in Scotland, ADS alone would be £28,000, before any LBTT due on the standard bands.
What about Wales?
Wales uses Land Transaction Tax (LTT). Since 11 December 2024, an additional-property purchase does not simply add a flat percentage to the standard bands; it uses its own, separately banded "higher rates" table.
Standard LTT main-residence rates: 0% up to £225,000, 6% on £225,001 to £400,000, 7.5% on £400,001 to £750,000, 10% on £750,001 to £1,500,000, and 12% above that.
Higher rates for an additional property, effective 11 December 2024:
| Band | Higher rate |
|---|---|
| Up to £180,000 | 5% |
| £180,001 to £250,000 | 8.5% |
| £250,001 to £400,000 | 10% |
| £400,001 to £750,000 | 12.5% |
| £750,001 to £1,500,000 | 15% |
| Above £1,500,000 | 17% |
These band breakpoints were verified directly against the Welsh Government's own Land Transaction Tax rates page on 15 September 2026 (see Sources). Wales's Draft Budget for 2026-27 announced no increases to either the standard or higher-rates tables.
Does it cost more if I am not a UK resident?
In England and Northern Ireland, yes. A buyer who has not been physically present in the UK for at least 183 days in the 12 months before completion pays a further 2 percentage points, on top of whichever rate table already applies. The surcharges stack: a non-UK resident buying an additional property in England could face the standard band rate, plus 5 percentage points for the additional property, plus 2 percentage points for non-residence, up to 19% on the top slice. No equivalent non-resident surcharge was found in Scotland's ADS or Wales's LTT rules as of this review; treat that as the current position rather than a permanent one, since either government could introduce one.
Can I get any of the extra stamp duty back?
If you buy a new main home before your old one sells, you pay the higher, additional-property rate at completion on the new purchase. You can then reclaim the surcharge portion of what you paid once the old main residence is sold, as long as the sale happens within the replacement window: 3 years in England and Northern Ireland (SDLT), 3 years (36 months) in Scotland for transactions from 1 April 2024 onward, and 3 years in Wales, with a narrow carve-out under discussion for exceptional cladding-related delays. In England and Northern Ireland the refund claim itself must be made within 12 months of the sale of the previous home, or 12 months of the SDLT return filing date, whichever is later.
Will I need a residential mortgage or a buy-to-let mortgage?
That depends on what you plan to do with the property. If you or your family will live in it yourselves at least some of the time, and it will not be let out commercially, lenders treat it as a second residential mortgage: broadly the same affordability assessment as a main-residence mortgage, based on your income and existing commitments, but often with a larger deposit expectation and closer scrutiny of how you will fund two sets of outgoings at once.
If the property will be let out, most lenders require a buy-to-let mortgage, assessed on the rental income the property can generate rather than your personal income alone. Under the Prudential Regulation Authority's Supervisory Statement SS13/16, lenders build an interest coverage ratio (ICR) test into buy-to-let underwriting: the property's expected rental income must cover a stressed interest cost by a set margin, commonly 125% for a basic-rate taxpayer or a limited-company borrower, and 145% for a higher or additional-rate taxpayer. The stress is applied against a notional rate, commonly the higher of the actual pay rate plus 2 percentage points or a lender floor around 5.5%, rather than the real interest rate on the deal, so that the loan would still be serviceable if rates rose. Lenders may relax this stress test where the mortgage is fixed for 5 years or more. The exact stress rate and any 5-year exemption terms are set by each individual lender, not fixed by the regulator, so treat any single figure as illustrative of current market practice rather than a guaranteed number.
How much deposit do I need?
Deposit requirements are set by individual lenders and vary with property type, income and the lender's own risk appetite, so there is no single statutory minimum. As a general market pattern, a residential second-home mortgage often needs a comparable or somewhat larger deposit than a main-residence purchase, while buy-to-let mortgages commonly require a larger deposit still, with maximum loan-to-value ratios around 75% being a typical starting point for buy-to-let, and some lenders lending up to around 80% at a rate or fee premium. These are market norms reported by mortgage brokers and lenders rather than regulatory caps, and they move with the interest-rate cycle, so check current criteria with a lender or broker before assuming a figure.
What other costs come with buying a second home?
Beyond the tax surcharge and deposit, a purchase carries the usual conveyancing legal fees, a mortgage valuation or a more detailed structural survey (particularly relevant for an older cottage or coastal property), a mortgage arrangement or product fee (which can often be added to the loan or paid upfront), and, in Scotland, the additional step of preparing a Home Report before the property can be marketed. Once you own the property, ongoing holding costs include buildings insurance, utilities even when unoccupied, and a council tax second-homes premium in many local authority areas; see our companion guide on second home council tax premiums for how that works from 2026 onward.
Work out your own numbers
- Stamp duty calculatorSDLT, LBTT or LTT on your own purchase price.
- Mortgage affordability calculatorResidential and buy-to-let ICR stress tests.
- Running costs calculatorWhat a second home costs to hold, year to year.
- Cost-split calculatorShare costs fairly if more than one household owns the property.
Common questions
Do I pay the surcharge if my second home costs less than £40,000?
No. The additional-property surcharge in England and Northern Ireland, and the equivalent supplements in Scotland and Wales, only apply above a £40,000 de minimis threshold in the England and Northern Ireland rules. Very low-value purchases sit outside the higher-rates regime.
Does buying with a spouse or partner change anything?
The ownership test looks at whether the buyer, and any joint buyer, will own two or more residential properties worldwide after the purchase. If either party already owns a home, the surcharge can apply to the whole purchase even if the other party is a first-time buyer, subject to the detailed rules for each nation's tax authority.
Is the buy-to-let stress rate the same at every lender?
No. PRA Supervisory Statement SS13/16 sets underwriting expectations, including an interest coverage ratio floor, but the exact stress rate applied to the notional interest cost is set by each individual lender, commonly reported around 5.5% or pay rate plus 2 percentage points. Always check the specific lender's current criteria rather than assuming a single market-wide number.
Sources
- GOV.UK, Stamp Duty Land Tax: residential property rates, checked 15 September 2026.
- GOV.UK, Higher rates of Stamp Duty Land Tax, checked 15 September 2026.
- Revenue Scotland, The Additional Dwelling Supplement (ADS), checked 15 September 2026.
- Revenue Scotland, ADS return, payment and amendments, checked 15 September 2026.
- GOV.WALES, Land Transaction Tax rates and bands, checked 15 September 2026.
- GOV.WALES, Higher rates for purchases of residential property: technical guidance, checked 15 September 2026.
- GOV.WALES, Claim a refund of Land Transaction Tax higher rates, checked 15 September 2026.
- Bank of England PRA, Supervisory Statement SS13/16: Underwriting standards for buy-to-let mortgage contracts, checked 15 September 2026.
Last reviewed 15 September 2026. Next review March 2027. Written by the OwnersLog team from the official sources listed above. No professional reviewer is named on this page yet.
This guide is general information about how the rules work, not financial, tax, legal or mortgage advice, and it cannot account for your circumstances. Confirm anything that matters with a qualified professional. See the full disclaimer.