Stamp Duty on Second Homes (UK, 2025)

Thinking about buying a second home, a holiday let, or dipping into the buy-to-let market? Alongside your deposit and mortgage costs, Stamp Duty Land Tax (SDLT) is one of the biggest upfront expenses you’ll face, and the rules have shifted recently.

From April 2025, second homes come with an additional 5% surcharge on top of standard Stamp Duty rates. That can add thousands to your purchase plans, so it’s important to know what to expect before you commit.

You can use our Stamp Duty Calculator to work out exactly what you’d pay on your second home.

What Counts as a Second Home?

You’ll pay the surcharge if you’re buying a residential property in addition to any other property you already own, either in the UK or abroad. Common examples include:

• A buy-to-let investment property

• A holiday home

• Helping a child onto the ladder (if your name is on the deeds)

• Retaining your first property when moving and buying another

Even if your first home is abroad, HMRC still counts it.

Stamp Duty Rates on Second Homes (2025)

The rates below apply when, after purchasing the property, you own more than one residential property:

Exceptions & Refunds

Not everyone has to pay the surcharge:

• Replacing your main home – If you sell your main residence and buy a new one at the same time, the extra 3% doesn’t apply.

• Refund if you sell later – If you buy a new home before selling your old one, you’ll pay the surcharge upfront, but can apply for a refund if the first property is sold within 3 years.

• Caravans, mobile homes & houseboats – These are exempt from Stamp Duty.

Planning for Your Second Home Purchase

Because the surcharge can make such a difference, planning ahead is key:

• Factor it into your budget early, don’t leave it as a surprise.

• Use our stamp duty calculator below to estimate the costs.

• Speak with an adviser about structuring the purchase – e.g., remortgaging existing property to raise funds.

Final Word

Buying a second home is exciting, but Stamp Duty can be a costly part of the process. Understanding the 5% surcharge and planning for it will help you budget confidently and avoid nasty surprises.

👉 Use our Stamp Duty Calculator to see how much you’d pay, or book your free Intro Call if you’d like advice tailored to your situation.