The higher rates for additional dwellings — often called the second-home stamp duty surcharge — add 5% to every SDLT band, including the nil-rate band. They apply to second homes, buy-to-lets and holiday lets, and to residential purchases by companies. The surcharge rose from 3% to 5% for completions on or after 31 October 2024.
Higher rates from 31 October 2024
| Portion of the price | Standard | Higher rates |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Above £1.5 million | 12% | 17% |
When do the higher rates apply?
For individuals, the higher rates apply when all of these are true:
- The price is £40,000 or more.
- At the end of the day of completion, you will own two or more dwellings worth £40,000 or more — anywhere in the world, including shares.
- You are not replacing your only or main residence.
Worked examples
| Price | Standard rates | Higher rates | Extra |
|---|---|---|---|
| £250,000 | £2,500 | £15,000 | £12,500 |
| £300,000 | £5,000 | £20,000 | £15,000 |
| £400,000 | £10,000 | £30,000 | £20,000 |
What if you are replacing your main home?
If the property you are buying will be your new main home, and you have sold (or are selling) your previous main home, the higher rates may not apply:
- Old home already sold on or before completion: standard rates apply.
- Old home not yet sold: you pay the higher rates now, and can claim the extra back once it sells (see below).
Can you get the higher rates refunded?
If you sell your previous main home within 3 years of buying the new one, you can claim back the difference between the higher and standard rates. The claim is made to HMRC by amending the return or by a separate claim form, within the time limits — normally 12 months from the sale or from the filing date of the return, whichever is later.
Example: you buy a £400,000 home for £30,000 while your old home is on the market. It sells eight months later — you can reclaim £20,000.
Couples and joint buyers
- Spouses and civil partners are treated as one unit. Buying in one partner's name does not avoid the higher rates if the other partner owns a home.
- With joint buyers who are not married, the higher rates apply to the whole purchase if any buyer meets the conditions.
When the higher rates don't apply
- Purchases under £40,000, and caravans, mobile homes and houseboats.
- Non-residential and mixed-use property.
- Buying six or more dwellings in one transaction, where non-residential rates are chosen.
Companies always pay the higher rates on dwellings of £40,000 or more, and a flat 17% can apply above £500,000 — see SDLT for companies.
This guide summarises HMRC's published rules for guidance. Special rules apply to trusts, inherited shares and properties bought for children — check with your conveyancer.