Additional Property Stamp Duty 2026
Buying a second home, buy-to-let or any additional residential property? You pay an extra 5% on top of every SDLT band. This page covers the investor and landlord angle: when the surcharge applies, how it stacks on top of standard rates, the 15% flat rate for higher-value company purchases, and how to claim a refund if you are replacing a main residence.
Calculator defaulted to "Second home / Additional property". Switch buyer type to compare against the standard band schedule.
The 5% surcharge applied to every band
The additional-property surcharge is applied marginally to every band, including the standard nil-rate band. For an investor or landlord in 2026, the effective band schedule looks like this.
| Price band | Standard rate | + 5% surcharge | Effective rate |
|---|---|---|---|
| £0 to £125,000 | 0% | 5% | 5% |
| £125,001 to £250,000 | 2% | 5% | 7% |
| £250,001 to £925,000 | 5% | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 5% | 15% |
| Above £1,500,000 | 12% | 5% | 17% |
Rates apply to residential property in England and Northern Ireland. Scotland uses LBTT plus ADS at 8% on the full price (not marginal). Wales uses LTT with a separate banded higher-rate structure introduced December 2024.
Cost examples
Side-by-side cost comparison: standard buyer SDLT vs additional-property SDLT (standard + 5% surcharge) at common UK price points.
| Price | Standard SDLT | Additional property SDLT | Extra (the surcharge) |
|---|---|---|---|
| £150,000 | £500 | £8,000 | £7,500 |
| £200,000 | £1,500 | £11,500 | £10,000 |
| £300,000 | £5,000 | £20,000 | £15,000 |
| £400,000 | £10,000 | £30,000 | £20,000 |
| £500,000 | £15,000 | £40,000 | £25,000 |
| £750,000 | £27,500 | £65,000 | £37,500 |
| £1,000,000 | £43,750 | £93,750 | £50,000 |
Figures rounded to the nearest £50. Use the calculator above for an exact band-by-band breakdown at your specific price.
When the 5% applies
- +Buying a second home or holiday home while keeping your existing main residence
- +Buying a buy-to-let investment property (you own a residence)
- +Buying through a limited company (the 5% always applies; above £500k the 15% flat rate replaces standard + 5%)
- +Buying jointly when one buyer already owns a residence anywhere in the world worth £40,000 or more
- +Buying a new main residence before selling the old one (pay the surcharge, reclaim if sold within 3 years)
- +Adding a beneficial interest to a property you already own through a transfer of equity for consideration above £40,000
When it does not apply
- -You are a first-time buyer with no other residential property anywhere in the world
- -You are replacing your main residence and the sale of the previous home completes on or before the same day
- -The property you are buying costs less than £40,000
- -The property is a caravan, mobile home or houseboat
- -You are inheriting the property (inheritance itself does not trigger SDLT)
- -The transaction is a transfer between spouses or civil partners for no consideration
Company purchase: the 15% flat rate above £500,000
For purchases by a non-natural person (a company or certain types of partnership), the rules split at £500,000.
- →Up to £500,000: standard SDLT plus the 5% surcharge applies, exactly as for an individual investor.
- →Above £500,000: the higher rate of 15% applies to the entire purchase price (flat, not marginal). A £750,000 company purchase of a single residential dwelling pays £112,500 in SDLT.
- →ATED implications: residential property above £500,000 owned by a company is also subject to the Annual Tax on Enveloped Dwellings (ATED) unless a relief applies (typically for rental businesses or property developers). ATED is reported and paid separately each year.
- →Reliefs from 15%: corporate property letting businesses, trades involving land development, and properties held by an open-ended investment company in certain circumstances can fall back to the standard SDLT plus 5% surcharge. The relief must be claimed in the SDLT1 return.
The corporate-purchase rules are complex; advisers should consult HMRC's guidance on rates of SDLT on higher-value properties owned by companies before structuring a purchase.
Getting the 5% surcharge back
If you bought the new property while still owning your previous main residence (a "replacement of main residence" scenario), you pay the 5% surcharge on completion. You can then reclaim it from HMRC under these conditions:
- 1.The new property must have become your only or main residence.
- 2.You must sell the previous main residence within 3 years of completing on the new one.
- 3.You must apply to HMRC within 12 months of selling the previous main residence (or 12 months of the SDLT return filing deadline, whichever is later).
- 4.Use HMRC's online repayment service for higher rates of SDLT, or paper form SDLT16 if the online service is unavailable.
The refund is the full 5% surcharge component (the difference between the additional-property SDLT and the standard SDLT for the same price). Interest is paid on the refund at HMRC's repayment rate, calculated from the date the original SDLT was paid.
Frequently Asked Questions
What is the additional property stamp duty surcharge in 2026?
The additional property surcharge is 5% on every SDLT band in England and Northern Ireland, applied marginally on top of standard rates. The surcharge increased from 3% to 5% on 31 October 2024.
For example, a £300,000 second home pays £20,000 in 2026: 5% on the first £125,000 (£6,250), 7% on the next £125,000 (£8,750), and 10% on the final £50,000 (£5,000). A standard buyer at the same price pays just £5,000.
When does the additional property surcharge apply?
The surcharge applies if, on the day of completion, you already own (anywhere in the world) any residential property worth £40,000 or more, and you are not replacing your main residence on the same day.
It applies whether the new property will be your main residence or a second home. The trigger is the existing ownership, not the intended use of the new property. The £40,000 threshold is on the ownership interest you already have, not on the new purchase.
Do companies pay the 5% surcharge or the 15% flat rate?
Both rates apply depending on price. Up to £500,000: standard SDLT plus the 5% surcharge. Above £500,000: a flat 15% applies to the entire price.
The 15% rate brings the property into the ATED regime unless a relief is claimed (typically for property letting businesses or development trades). Reliefs must be claimed in the SDLT1 return at the time of purchase.
Can you claim back the 5% surcharge?
Yes, if you were replacing your main residence. The qualifying conditions are: the new property is now your main residence, you sell the previous main residence within 3 years, and you apply within 12 months of that sale.
Use HMRC's online repayment service for higher rates of SDLT, or form SDLT16 if the online service is unavailable. HMRC pays interest on the refund at the repayment rate calculated from the original payment date.