Stamp duty on a second home in England in 2026 includes the standard SDLT rates plus a 5% additional dwelling surcharge (raised from 3% in October 2024). The surcharge applies to every band of the property value, including the first £125,000 where standard SDLT is normally zero. For non-UK residents buying a second home, an additional 2% non-resident surcharge applies on top.
For a £500,000 second home bought by a UK resident, the total SDLT in 2026 is £40,000 — substantially higher than the £12,500 standard SDLT on the same property as a main residence.
This guide covers the rates, what counts as a second home, worked examples, available exemptions and refunds, and how to pay.
What Counts as a Second Home
The Stamp Duty Land Tax additional dwelling surcharge applies to anyone buying a residential property in England or Northern Ireland that is not replacing their main residence. The definition is broader than just “holiday home” — it covers any of these scenarios:
- Buy-to-let property — investment property purchased to rent to tenants
- Holiday home — second property for personal occasional use
- Property purchased through a company (limited company SPV)
- Property bought while still owning the previous main residence — even if the intention is to sell the previous home later
- Property for a family member to live in — if the buyer is acquiring the legal ownership
- Additional property in any form — whether a flat, house, or new-build
The surcharge applies to anyone, regardless of nationality, buying their second or subsequent property. UK residents and non-residents both pay the surcharge, with non-residents paying additional charges on top.
2026 Rates Table and Surcharge
The 2026 SDLT structure for second homes in England has three layers:
- Standard SDLT rates based on the property purchase price
- Plus 5% additional dwelling surcharge on every band (raised from 3% to 5% on 31 October 2024)
- Plus 2% non-resident surcharge for buyers not UK resident in the relevant period
Standard SDLT bands for 2026
The 2026 standard SDLT bands (after the temporary increase from previous nil-rate threshold returned to £125,000 on 1 April 2025):
| Property Price Band | Standard SDLT Rate |
|---|---|
| £0 to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5m | 10% |
| Above £1.5m | 12% |
Second home rates for 2026 (standard SDLT + 5% surcharge)
| Property Price Band | Second Home SDLT Rate |
|---|---|
| £0 to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5m | 15% |
| Above £1.5m | 17% |
Non-resident second home rates (standard SDLT + 5% + 2%)
| Property Price Band | Non-Resident Second Home SDLT Rate |
|---|---|
| £0 to £125,000 | 7% |
| £125,001 to £250,000 | 9% |
| £250,001 to £925,000 | 12% |
| £925,001 to £1.5m | 17% |
| Above £1.5m | 19% |
These rates apply from 1 April 2025 onwards and are the relevant rates throughout 2026.
Worked Examples
The SDLT calculation is applied band by band rather than as a single flat rate. Three worked examples covering common scenarios.
Example 1: £400,000 buy-to-let bought by a UK resident
- £0 to £125,000 at 5% (second home rate): £6,250
- £125,001 to £250,000 at 7%: £8,750
- £250,001 to £400,000 at 10%: £15,000
- Total SDLT: £30,000
Equivalent rate as main residence (first property): £7,500. The surcharge adds £22,500 to the SDLT cost.
Example 2: £750,000 second home bought by a UK resident
- £0 to £125,000 at 5%: £6,250
- £125,001 to £250,000 at 7%: £8,750
- £250,001 to £750,000 at 10%: £50,000
- Total SDLT: £65,000
Equivalent as main residence: £27,500. The surcharge adds £37,500.
Example 3: £1,200,000 London buy-to-let bought by a non-UK resident
- £0 to £125,000 at 7% (with non-resident surcharge): £8,750
- £125,001 to £250,000 at 9%: £11,250
- £250,001 to £925,000 at 12%: £81,000
- £925,001 to £1,200,000 at 17%: £46,750
- Total SDLT: £147,750
The combined surcharges add £75,500 to the equivalent UK resident main residence purchase. For a non-resident London buy-to-let buyer, SDLT alone consumes over 12% of the purchase price.
Exemptions and Refunds
Several specific exemptions and refunds apply to the second home surcharge.
Main residence replacement refund
If you buy a new main residence before selling your existing main residence, you pay the second home surcharge initially. However, you can claim a refund of the 5% surcharge if you sell the previous main residence within 36 months of the new purchase.
The refund claim process:
- Submit the refund application through HMRC within 12 months of selling the previous main residence
- Required documentation includes evidence of sale, the original SDLT return, and confirmation of the new property as main residence
- The 2% non-resident surcharge (if applicable) is not refundable through this route — only the 5% additional dwelling surcharge
Other exemptions
- Inherited property — inheriting a property does not by itself count as a chargeable purchase for SDLT surcharge purposes, though it affects the count of properties owned when you later make a chargeable purchase
- Property transfer between spouses — transfers between spouses and civil partners are typically exempt from SDLT
- Caravans, mobile homes, and houseboats — not subject to SDLT
- Mixed residential and commercial property above certain thresholds — may qualify for different SDLT treatment
- Property under £40,000 — no SDLT and no surcharge applies
When the surcharge does not apply
- The buyer is replacing their main residence and selling the previous one on the same day
- The buyer is a first-time buyer (no second home surcharge applies, and first-time buyer relief may apply)
- The transaction is between spouses or civil partners
- The property is below £40,000 in value
read also- London buy to let hotspots
How to Pay Stamp Duty
SDLT is paid through HMRC after completion of the property purchase. The process is typically handled by the buyer’s conveyancing solicitor as part of the standard completion process.
The payment process:
- Step 1: Your solicitor calculates the total SDLT due based on the purchase price and circumstances
- Step 2: At completion, the solicitor collects the SDLT amount from the buyer
- Step 3: Within 14 days of completion, the solicitor submits the SDLT return to HMRC and transfers the payment
- Step 4: HMRC issues a UTRN (Unique Transaction Reference Number) confirming receipt
- Step 5: Once paid, HM Land Registry can register the property in the buyer’s name
If you handle the SDLT yourself (rare in practice but legally possible), the return must be filed online through HMRC’s portal within 14 days of completion. Late returns incur penalties starting at £100 for delays of up to 3 months and increasing for longer delays.
Practical Planning for Second Home Buyers
For buyers considering a second home in 2026, several practical planning points apply.
Budget for SDLT explicitly:
- For a £500,000 second home as a UK resident, budget approximately £40,000 SDLT
- For a £1 million non-resident buy-to-let, budget approximately £105,000 SDLT
- Add to the deposit, conveyancing fees, mortgage arrangement fees, and other transaction costs
Time the transactions carefully:
- If replacing a main residence, plan for selling the existing home within 36 months to claim the surcharge refund
- For sequential purchases, the second purchase incurs the surcharge regardless of intention
- Mortgage offer timing affects the SDLT calculation date
Consider limited company purchase carefully:
- Limited company SPV purchases are subject to the same surcharge plus the additional 15% rate on residential property over £500,000 owned by certain corporate structures
- For buy-to-let investors, the tax efficiency benefits of limited company ownership may offset the additional SDLT cost
For HMRC SDLT calculator and official rates information, check: HMRC — Stamp Duty Land Tax calculator
For comprehensive London property buying guidance, see our buying-property and foreigner-buyer guides.
Conclusion
Stamp duty on second homes in England in 2026 includes the standard SDLT rates plus a 5% additional dwelling surcharge on every band, raised from 3% to 5% on 31 October 2024. Non-UK residents pay an additional 2% non-resident surcharge on top. For a £500,000 second home, a UK resident pays £40,000 SDLT versus £12,500 for the same property as a main residence; for a non-resident at £1.2 million, SDLT reaches £147,750 (over 12% of purchase price). The 5% surcharge can be refunded when replacing a main residence and selling the previous one within 36 months. Plan for the SDLT explicitly in your purchase budget and consult a tax adviser before structuring purchases through limited companies or unusual ownership arrangements.
Frequently Asked Questions
What is the stamp duty on a second home in 2026?
The 2026 second home SDLT in England is the standard SDLT rate plus a 5% additional dwelling surcharge on every band. For a £500,000 second home, total SDLT is £40,000; for a £1 million property, £77,500.
How much stamp duty does a non-resident pay on a UK second home?
Non-UK residents pay the standard SDLT plus the 5% additional dwelling surcharge plus a 2% non-resident surcharge. For a £1 million London second home, total SDLT for a non-resident buyer reaches approximately £97,500.
Can I get a stamp duty refund if I sell my old home?
Yes — if you buy a new main residence before selling your previous one and sell the previous home within 36 months, you can claim a refund of the 5% additional dwelling surcharge through HMRC. The 2% non-resident surcharge is not refundable through this route.
When does the 5% stamp duty surcharge apply?
The 5% additional dwelling surcharge applies to anyone buying a residential property in England or Northern Ireland that is not replacing their main residence — including buy-to-let, holiday homes, properties through limited companies, and properties bought while still owning a previous main residence.
