Higher rates for additional dwellings (stamp duty surcharge)

The higher rates for additional dwellings are a Stamp Duty Land Tax (SDLT) surcharge in England and Northern Ireland. According to HMRC, you pay them when you buy a residential property for £40,000 or more and, at the end of that day, you or your spouse or civil partner own more than one residential property worth £40,000 or more anywhere in the world, without having sold your previous main home. The surcharge has been 5% on top of each band since 31 October 2024; from 1 April 2016 to 30 October 2024 it was 3%.

If you buy a new main home before selling the old one, you pay the higher rates, then claim a refund if you sell the old home within 3 years.

Example: a £300,000 buy-to-let bought in England costs £20,000 in SDLT: 5% on the first £125,000, 7% on the next £125,000 and 10% on the last £50,000. A home mover pays £5,000 on the same price.

Scotland and Wales have their own versions. According to Revenue Scotland, the Additional Dwelling Supplement (ADS) is a flat 8% of the whole price for transactions from 5 December 2024, so ADS on £300,000 is £24,000 on top of Land and Buildings Transaction Tax. According to the Welsh Government, Land Transaction Tax higher rates run from 5% up to £180,000 to 17% above £1.5 million from 11 December 2024, which gives £19,950 on £300,000 (RightSums engine, 27 September 2026).

Compare all three nations in the stamp duty calculator, and read about the tax when you sell in Capital Gains Tax on selling a second home.