Additional property stamp duty
Understand higher stamp duty rates for additional residential properties and estimate the extra property tax when buying a second home or buy-to-let.
If buying a residential property means you will own more than one residential property, higher SDLT rates will usually apply. The higher rates are currently 5 percentage points above the standard residential bands.
Current higher SDLT bands
| Purchase-price portion | Higher rate |
|---|---|
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5 million | 15% |
| Above £1.5 million | 17% |
Example: a £300,000 additional property
The estimated SDLT is £20,000: 5% on the first £125,000, 7% on the next £125,000 and 10% on the final £50,000.
Replacing your main home
If you buy your new main residence before selling the old one, the higher rates may initially apply because you own two properties at completion. Depending on the circumstances and timing of the later sale, you may be able to reclaim the higher-rate element.
Wales and Scotland use different systems
Wales applies higher residential LTT rates and Scotland applies the Additional Dwelling Supplement alongside LBTT. Those systems use different thresholds and rates.
Bring the numbers together.
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