If a purchase leaves you owning more than one residential property, all three UK property taxes charge a higher rate. That includes buy-to-let, holiday homes and buying a new home before you’ve sold the old one. The surcharge has risen in every nation since 2024.
The current higher rates
- England & Northern Ireland (SDLT): an extra 5% on top of every band. This was 3% until October 2024.
- Scotland (LBTT): the Additional Dwelling Supplement (ADS) is 8% of the whole price, on top of LBTT. This was 6% until December 2024.
- Wales (LTT): a separate higher residential rates table applies from the first pound, from 5% up to 17%.
All three apply only where the price is £40,000 or more.
What you’d pay on an additional property
| Price | England/NI | Scotland | Wales |
|---|---|---|---|
| £150,000 | £8,000 | £12,100 | £7,500 |
| £250,000 | £15,000 | £22,100 | £14,950 |
| £400,000 | £30,000 | £45,350 | £29,950 |
| £600,000 | £50,000 | £81,350 | £54,950 |
Compare: a home mover buying at £250,000 in England pays £2,500.
Replacing your main home: claiming the surcharge back
If you buy a new main home before selling your old one, you’ll usually pay the higher rates at first. You can claim a refund if you sell your previous main home within:
- 3 years in England and Northern Ireland,
- 36 months in Scotland and Wales.
Claim through HMRC, Revenue Scotland or the WRA after the sale. The refund isn’t automatic.
Who counts as owning a property?
- Property owned anywhere in the world counts.
- For couples, married or civil partners are treated as one unit. If either owns a home, the higher rates usually apply.
- An inherited share of 50% or less is ignored for three years after you inherit it. Larger shares count straight away.
- Companies buying residential property pay the higher rates, and may pay a 17% flat rate in England on homes over £500,000 in some cases.
Non-UK residents
In England and Northern Ireland, buyers who aren’t UK resident pay a further 2% on top of the higher rates. A non-resident buy-to-let investor can pay up to 7% above standard rates.
Buy-to-let: is it still worth it?
Higher stamp duty, mortgage interest restrictions for individual landlords (tax relief limited to 20%), and, from April 2027, higher property income tax rates (22%, 42% and 47%) have all reduced buy-to-let returns. Factor the full upfront tax into any yield calculation.
Calculate it
First-time buyers should read stamp duty for first-time buyers instead. To weigh a buy-to-let against simply investing, try the rent vs buy calculator. Choose Buying another in the stamp duty calculator to see the higher rates band by band for any nation.
Common questions
Do I pay the surcharge if I sell my old home on the same day?
No. If you sell your main residence on or before the day you complete the new purchase, you aren’t buying an additional home.
Does a caravan or houseboat count?
Generally no. The rules apply to residential property interests worth £40,000 or more.
Is the surcharge on the whole price?
In England and NI it’s added to every band. In Scotland ADS is 8% of the whole price. Wales uses a separate higher-rates table. Compare all three in the stamp duty calculator.
Is buy-to-let still worth it?
Run the numbers with all upfront tax included, and compare against investing instead using the rent vs buy calculator.
This guide is general information, not financial or tax advice.