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Paying stamp duty on a second home
Looking to buy a countryside escape, a flat for a family member, or an extra investment? Here’s what you need to know about stamp duty on a second home.
What is stamp duty?
Stamp duty is a tax you might need to pay when buying a property or land. It’s officially known as Stamp Duty Land Tax (SDLT) in England and Northern Ireland. In Wales it’s called Land Transaction Tax (LTT), and in Scotland it’s called Land and Buildings Transaction Tax (LBTT).
The amount you pay depends on when you made the purchase, the property's price and whether you can get any relief or exemptions.
How does stamp duty work for second homes?
Stamp duty on second homes differs depending on where the home you’re buying is in the UK. If you’re not a UK resident, you might also need to pay an extra 2% in England and Northern Ireland.
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England and Northern Ireland second home stamp duty Second home property amount
Amount of stamp duty (LTT)
Second home property amount
Any amount up to £180,000
Amount of stamp duty (LTT)
5%
Second home property amount
The amount between £180,001 and £250,000
Amount of stamp duty (LTT)
8.5%
Second home property amount
The amount between £250,001 and £400,000
Amount of stamp duty (LTT)
10%
Second home property amount
The amount between £400,001 and £750,000
Amount of stamp duty (LTT)
12.5%
Second home property amount
The amount between £750,001 and £1.5 million
Amount of stamp duty (LTT)
15%
Second home property amount
The amount over £1.5 million
Amount of stamp duty (LTT)
17%
For properties in Wales, you can use a Land Transaction Tax calculator to help with your own calculations.
If the property is worth less than £40,000, there's no stamp duty to pay.
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England and Northern Ireland second home stamp duty Second home property amount
Amount of stamp duty (LBTT)
Second home property amount
Any amount up to £145,000
Amount of stamp duty (LBTT)
0%
Second home property amount
The amount between £145,001 and £250,000
Amount of stamp duty (LBTT)
2%
Second home property amount
The amount between £250,001 and £325,000
Amount of stamp duty (LBTT)
5%
Second home property amount
The amount between £325,001 and £750,000
Amount of stamp duty (LBTT)
10%
Second home property amount
The amount over £750,000
Amount of stamp duty (LBTT)
12%
For properties in Scotland, use a Land and Buildings Transaction Tax calculator to help with your own calculations.
If the property is worth less than £40,000, there's no Land and Buildings Transaction Tax to pay.
When buying a second home, you’ll also pay the Additional Dwelling Supplement (ADS). This is 8% of the full purchase price (source moneyhelper.org.uk).
|
Second home property amount |
Amount of stamp duty |
|---|---|
|
Second home property amount Any amount up to £125,000 |
Amount of stamp duty 5% |
|
Second home property amount The amount between £125,001 and £250,000 |
Amount of stamp duty 7% |
|
Second home property amount The amount between £250,001 and £925,000 |
Amount of stamp duty 10% |
|
Second home property amount The amount between £925,001 and £1.5 million |
Amount of stamp duty 15% |
|
Second home property amount The amount over £1.5 million |
Amount of stamp duty 17% |
For properties in England or Northern Ireland, you can use the HMRC Stamp Duty Land Tax calculator to help with your own calculations.
If the property is worth less than £40,000, there's no stamp duty to pay.
Let’s take a closer look
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Any property you own, other than your main home, usually counts as a second home. This might include:
- rental properties
- holiday homes
- homes bought for loved ones in your name
- places you want to live in while you work.
If you plan to make your second property your main home, you must let HMRC know within 2 years of purchase. They can then refund any extra stamp duty you might have paid.
-
Some situations mean you don't have to pay stamp duty.
These exemptions often relate to how someone buys the property or the circumstances of the transfer.
For a second home, they might include:
- inheriting property in a will
- transferring ownership due to separation or divorce
- being gifted a second property without a mortgage attached
- caravans, mobile homes or houseboats.
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If you buy your new home before selling your old one, you might be charged the higher stamp duty rates for now. That’s because you technically own 2 properties.
But there’s a silver lining. If you sell your old home within 3 years, you can apply for a refund.
You must complete this within 12 months of the sale. You can also do it within 12 months from the date you filed the stamp duty return.
Next steps
From holiday homes in the countryside to cutting down the work commute, a second home mortgage could help make it happen.
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