Thinking about buying a second property in the UK? Whether it’s a holiday retreat, buy-to-let, or investment flat, there’s one cost that catches many buyers off guard: Stamp Duty on second homes. This guide breaks down the current 2025 rates, refund options, and how to use a second home stamp duty calculator to plan your purchase smartly.
What is Stamp Duty Land Tax (SDLT) on Second Homes?
Stamp Duty Land Tax (SDLT) is a property transaction tax payable when buying property or land in England and Northern Ireland. However, if you’re buying a second home, you’ll pay a 3% surcharge on top of the standard SDLT rates.
This applies whether it’s:
A buy-to-let property
A holiday home
A second house bought jointly with someone who already owns a home
💡 Try our Stamp Duty on Second Home Calculator to instantly estimate what you owe in 2025.
How Much Stamp Duty on Second Homes? (Updated for 2025)
As of 1 April 2025, the 2nd home stamp duty rates are:
Purchase Price | Standard SDLT Rate | Second Home Surcharge | Total Stamp Duty |
Up to £250,000 | 0% | 3% | 3% |
£250,001 – £925,000 | 5% | 8% | 8% |
£925,001 – £1.5 million | 10% | 13% | 13% |
Over £1.5 million | 12% | 15% | 15% |
Example:
If you’re buying a £500,000 second home:
First £250,000 @ 3% = £7,500
Next £250,000 @ 8% = £20,000
Total SDLT = £27,500
Who Pays Stamp Duty for a Second Home?
You’ll pay stamp duty for a second home if:
You already own a home (in the UK or abroad)
You’re buying through a company or trust
You're married and your partner owns property
This also applies to leasehold extensions on additional properties.
What Counts as a Second Home?
A second home includes:
Holiday homes
Buy-to-let properties
Property bought for a child or family member
Inherited property (if not your main residence)
Even if you don’t intend to rent it out, stamp duty with second home rules will still apply.
What is the 3-Year Rule for Stamp Duty?
The 3-year rule allows you to claim back second home stamp duty if you:
Purchase a second home
Sell your main residence within 3 years
Make a refund claim via HMRC
✅ Claiming back stamp duty on second home
Can I Avoid Stamp Duty on a Second Home?
How to avoid stamp duty on a second home legally:
Sell your previous main residence within 3 years of buying the new one
Buy a property under £40,000 (exempt)
Transfer property to a spouse or civil partner, but beware of HMRC scrutiny
⚠️ Buying in a spouse’s name or using a company may still trigger the surcharge if not structured correctly.
Stamp Duty for Non-UK Residents
If you’re a non-UK resident, an additional 2% SDLT surcharge applies. This is stacked on top of the 3% second home surcharge – making it potentially 5% more expensive than for UK residents.
Stamp Duty on Second Homes Across the UK
England & Northern Ireland: SDLT applies (rates above)
Scotland: Land and Buildings Transaction Tax (LBTT) with 4% surcharge
Wales: Land Transaction Tax (LTT) with 4% surcharge
Using a Second Home Stamp Duty Calculator (2025 Version)
To estimate your total tax liability, use a UK Stamp Duty Calculator tailored for second properties.
✅ Try:
Enter:
Property value
Buyer status (first-time, non-resident, etc.)
Location (England, Scotland, Wales)
When Do You Pay Stamp Duty on a Second Home?
You must pay your second house stamp duty within 14 days of the transaction completing. Your solicitor usually submits the SDLT return and processes the payment for you.
Can I Add Stamp Duty to My Mortgage?
Yes, many lenders allow this. But it increases your monthly repayment and long-term interest. Speak to a mortgage advisor first.
What If I Don’t Pay the Surcharge?
HMRC can:
Fine you
Charge interest
Investigate if false declarations are made
Make sure you understand stamp duty and second homes thoroughly before purchase.
Frequently Asked Questions
How much is stamp duty on a second home in 2025?
The surcharge is 3% on top of the normal SDLT rate. This applies to properties over £40,000 in England and NI.
How do I avoid stamp duty on a second home?
The only legal way is to replace your main residence and sell your previous one within 3 years.
What are the new rules on second homes?
As of April 2025:
Surcharge remains 3%
Additional 2% applies to non-UK residents
Rates have been adjusted across price bands
What is the 3-year rule for stamp duty?
If you sell your former main home within 3 years of buying a new one, you can claim a refund on the second home surcharge.
Final Word: Plan Before You Buy
Buying a second home is a major financial step, and SDLT can be a significant cost. With changes in stamp duty on second home 2025, it's crucial to use tools like a stamp duty calculator 2025, and get personalised advice if your situation is complex.
Want help estimating your stamp duty bill or advice on structuring the purchase? Speak to a mortgage advisor or solicitor today.