If you are buying a second home in the UK, you will usually pay a 3% stamp duty surcharge on top of standard Stamp Duty Land Tax (SDLT) rates.
This higher rate applies whether the property is a buy-to-let investment, holiday home, or additional residential property.
Understanding when the surcharge applies — and whether you qualify for any exceptions — is essential before completing your purchase.
When Does the 3% Surcharge Apply?
The higher rate applies if, at the end of the transaction, you own more than one residential property and you are not replacing your main residence.
You may still be treated as owning another property even if:
- It is jointly owned
- It is overseas
- It was inherited (depending on share and timing)
Example Calculation
If you purchase a second home for £300,000:
You would pay standard SDLT rates plus an additional 3% surcharge on the full purchase price.
The surcharge alone would be £9,000 (3% of £300,000), in addition to the standard SDLT due.
Are There Any Exceptions?
You may avoid the surcharge if you are replacing your main residence and sell your previous home within 36 months of the purchase.
Certain inherited properties and transfers under court orders may also have different treatment.
Related Stamp Duty Scenarios
You may also want to read:
- Buying with a Partner Who Already Owns Property
- First-Time Buyer but Partner Isn’t
- Transferring Property After Divorce
- Do You Pay Stamp Duty on Inherited Property
Frequently Asked Questions
Do I pay stamp duty on a holiday home?
Yes, a holiday home is usually treated as an additional property and the 3% surcharge may apply.
What if I sell my previous home later?
You may be able to reclaim the higher rate if you sell your former main residence within 36 months.
Does owning property abroad count?
Yes, overseas residential property can affect whether the higher rate applies.