How much extra stamp duty do you pay on a buy-to-let or second home?

In England and Northern Ireland, SDLT is the stamp duty system for residential purchases; Scotland uses LBTT with ADS, and Wales uses LTT higher rates. The key mistake is treating the second-home charge as a separate flat tax rather than an uplift on the relevant rate table.

How much extra stamp duty do you pay on a buy-to-let or second home?

In England and Northern Ireland, the extra stamp duty on a buy-to-let or second home is 5 percentage points added to the standard residential SDLT rates, not a separate 5%–17% surcharge and not a flat 5% band up to £250,000. HMRC says: “This measure increases the higher rates of Stamp Duty Land Tax (SDLT) on purchases of additional residential properties by individuals and purchases of residential properties by companies from 3 to 5 percentage points above the standard residential rates of SDLT.” That means the SDLT rates on an additional property follow the standard SDLT bands plus 5 percentage points; since 1 April 2025 the standard nil-rate band is £125,000, not £250,000. A £300,000 buy-to-let property stamp duty bill is commonly calculated as £20,000: 5% on £125,000, 7% on £125,000, and 10% on £50,000. Scotland’s ADS is different: “For transactions on or after 5 December 2024 the ADS is 8% of the purchase price.” Wales uses a separate higher LTT rate table, because “For residential property, there are 2 rates of LTT: main and higher.”

Do you pay the surcharge on your own new home if you already own a buy-to-let?

You do not pay the SDLT additional property surcharge on your own new home in England and Northern Ireland if you sell your old main residence on or before completion, even if you still own a buy-to-let; if you buy first and sell later, you pay the higher rate upfront and reclaim it only if the refund rules are met. HMRC’s manual explains the replacement-home rule: “Its purpose is to ensure that replacing a main dwelling, in certain circumstances, is not a higher rates transaction even where the purchaser owns multiple dwellings.” That is why stamp duty on a main residence if you own another property turns on whether you are replacing your previous main home, not simply on whether you own a buy-to-let. HMRC’s example says: “The higher rates will not apply to the joint purchase by Mr and Mrs S of a new main residence.” But if you have been renting and keep an existing property, HMRC says the higher rates apply because the buyers “already own an interest in another residential property.” In Scotland, ADS applies where the previous main residence has not been replaced; Wales applies its own higher LTT replacement-home rules.

Can you get the surcharge refunded if you sell your old home afterwards?

In England and Northern Ireland, you can get the higher-rate SDLT surcharge refunded if you sell your previous main home within 3 years of buying the new one, but selling a buy-to-let afterwards does not unlock a refund. HMRC states the timing rule plainly: “You must have sold your previous main home within 3 years of buying the new property, unless exceptional circumstances apply.” The refund is for a delayed main-home replacement, so the question is not simply whether you sell a house after buying another; it is whether the sold property was your old main residence. HMRC’s buy-to-let example is equally clear: “Mr T will not be able to claim a refund when he sells his current buy-to-let property as refunds are only available where a previous main residence has been replaced.” HMRC says it will usually pay an accepted refund “directly into your bank account within 15 working days of receiving your claim.” Scotland also restricts ADS repayment to replacement of a previous main residence, but Revenue Scotland says: “The legislation contains no provisions giving Revenue Scotland power to consider any exceptional circumstances.” In Wales, “If you sell your previous main home within 3 years of buying your new main home, you can usually apply for a refund.”

Does a property you inherited count towards the surcharge?

In England, Northern Ireland and Wales, an inherited share of 50% or less is ignored for the higher-rates test for 3 years from the date of inheritance, but after 3 years, or if the share is more than 50%, it counts as another dwelling; Scotland has no equivalent shield and inherited dwellings count immediately for ADS. The SDLT rule says the buyer is “not to be treated” as holding the major interest “during the period of three years beginning with the date of the inheritance.” HMRC confirms the other side of the rule: “If such an interest was inherited more than three years before the chargeable transaction, then it will count as an interest in another dwelling at the end of the day of the effective date of the chargeable transaction.” Inheriting the property itself does not create an SDLT charge in England and Northern Ireland, because HMRC says: “If you get land or property under the terms of a will, there's no need to tell HMRC and you will not pay Stamp Duty Land Tax.” Wales has the same 50% and 3-year rule for LTT. Scotland is stricter: Revenue Scotland says, “However, inherited dwellings will count towards dwellings owned by a buyer for the purposes of the ADS.”

What stamp duty do you pay if you buy two properties at the same time?

In England and Northern Ireland, buying two properties at the same time usually means SDLT is calculated on linked transactions if they form one deal, and if two qualifying dwellings are bought in one transaction the whole transaction can be charged at the higher additional-property rates. HMRC says: “If 2 or more transactions are treated as linked then the buyer pays any Stamp Duty Land Tax due on the total value of all linked transactions.” The statutory test is whether the deals “form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser” or connected persons. For multiple dwellings, HMRC says: “If at least two of the purchased dwellings meet all three of these conditions, then the whole transaction is a ‘higher rates transaction’ and the higher rate of SDLT applies.” Multiple dwellings relief has been repealed for SDLT transactions with an effective date on or after 1 June 2024. A separate rule matters for larger portfolios: where “six or more separate dwellings” are bought in one transaction, they are treated as not residential property for SDLT. Scotland and Wales have their own linked-transaction and higher-rate systems under LBTT and LTT.

Do you pay stamp duty on a transfer of equity?

In England and Northern Ireland, you pay SDLT on a transfer of equity if the chargeable consideration for the share is above the current SDLT threshold, and taking over mortgage debt counts as consideration. HMRC says: “You pay Stamp Duty Land Tax if the chargeable consideration given in exchange for the share transfer is more than the current Stamp Duty Land Tax threshold for the property type.” The legislation on mortgage assumption says that “assumption of debt constitutes chargeable consideration for the transaction.” The current residential nil-rate band is £125,000, so older transfer-of-equity examples using a £250,000 nil-rate band are stale even when they still appear on GOV.UK. Marriage or moving in together is not a blanket SDLT exemption: if one spouse or partner takes on debt or pays money above the threshold, SDLT may be due. Divorce and separation transfers are different; HMRC says that in those cases “there’s no need to tell HMRC about the transfer, even if the value is more than the Stamp Duty Land Tax threshold.” Scotland and Wales apply LBTT and LTT rather than SDLT.

Can you avoid the stamp duty surcharge?

In England and Northern Ireland, you cannot lawfully avoid the SDLT surcharge on a plain extra buy-to-let or second home, but you do not pay it where the purchase is genuinely outside the additional-dwelling rules, such as a replacement main residence, mixed-use property, or a single transaction involving six or more dwellings. The core statutory test includes the condition that “the purchased dwelling is not a replacement for the purchaser's only or main residence.” If your old main home is still owned at completion, GOV.UK says: “If you have not sold your main residence on the day you complete your new purchase, you’ll have to pay higher rates.” Companies do not avoid the charge by being companies: HMRC says, “There is a 5% surcharge on residential properties bought by companies.” Six or more dwellings are different because the statute treats them “as not being residential property.” Mixed-use property is also different; GOV.UK says a mixed property has “both residential and non-residential elements.” HMRC’s view on marketed hybrid-LLP property schemes is blunt: “HMRC’s view is that this scheme does not work.” Scotland charges ADS at 8% of the price, and Wales applies higher LTT unless a Welsh relief or refund rule applies.

When do you have to pay stamp duty?

In England and Northern Ireland, SDLT is normally filed and paid within 14 days of the effective date, usually completion, and that 14-day rule can apply even where no tax is due. The legislation says: “In the case of every notifiable transaction the purchaser must deliver a return … before the end of the period of 14 days after the effective date of the transaction.” The payment deadline is the same because “Tax payable in respect of a land transaction must be paid not later than the filing date for the land transaction return relating to the transaction.” GOV.UK also says: “You’ll need to send your return within 14 days of the effective date of the transaction, even if you do not owe any tax.” If the return is late, the flat penalty is “£100 if the return is delivered within three months after the filing date.” In practice, conveyancers usually collect the SDLT money shortly before completion, but the legal duty sits with the purchaser. Scotland gives 30 days for LBTT, and Wales says LTT “must pay within 30 days from the day after the effective date of transaction.”

Last reviewed August 2026.

Sources

• HM Treasury / HMRC policy paper on higher rates of SDLT — “This measure increases the higher rates of Stamp Duty Land Tax (SDLT) on purchases of additional residential properties by individuals and purchases of residential properties by companies from 3 to 5 percentage points above the standard residential rates of SDLT.” Source
• Revenue Scotland, Additional Dwelling Supplement — “For transactions on or after 5 December 2024 the ADS is 8% of the purchase price.” Source
• Welsh Government, higher rates Land Transaction Tax overview — “For residential property, there are 2 rates of LTT: main and higher.” Source
• August, stamp duty for landlords — “A £300,000 buy-to-let, for instance, attracts £20,000 of stamp duty: 5% on the first £125,000, 7% on the next £125,000, and 10% on the final £50,000.” Source
• HMRC SDLT Manual SDLTM09800 — “Its purpose is to ensure that replacing a main dwelling, in certain circumstances, is not a higher rates transaction even where the purchaser owns multiple dwellings.” Source
• HMRC SDLT Manual SDLTM09810 — “The higher rates will not apply to the joint purchase by Mr and Mrs S of a new main residence.” Source
• HMRC SDLT Manual SDLTM09810 — “The higher rates will apply to the purchase by Mr and Mrs C as they already own an interest in another residential property: the flat above the shop.” Source
• Revenue Scotland ADS return, payment and amendments guidance — “At the end of the effective date Purple and Pink own more than one dwelling and have not replaced their PMR, so the ADS will apply.” Source
• GOV.UK, apply for a refund of higher rates SDLT — “You must have sold your previous main home within 3 years of buying the new property, unless exceptional circumstances apply.” Source
• HMRC SDLT Manual SDLTM09810 — “Mr T will not be able to claim a refund when he sells his current buy-to-let property as refunds are only available where a previous main residence has been replaced.” Source
• GOV.UK, refunds of Stamp Duty Land Tax — “HMRC will usually make the payment directly into your bank account within 15 working days of receiving your claim.” Source
• Revenue Scotland ADS return, payment and amendments guidance — “The legislation contains no provisions giving Revenue Scotland power to consider any exceptional circumstances.” Source
• Welsh Government, higher rates Land Transaction Tax overview — “If you sell your previous main home within 3 years of buying your new main home, you can usually apply for a refund.” Source
• Finance Act 2003 Schedule 4ZA paragraph 16 — “P is not to be treated for the purposes of paragraph 3(4)(a) or 6(1)(e) as having the major interest at any time during the period of three years beginning with the date of the inheritance.” Source
• HMRC SDLT Manual SDLTM09795 — “If such an interest was inherited more than three years before the chargeable transaction, then it will count as an interest in another dwelling at the end of the day of the effective date of the chargeable transaction.” Source
• GOV.UK, SDLT transferring ownership of land or property — “If you get land or property under the terms of a will, there's no need to tell HMRC and you will not pay Stamp Duty Land Tax.” Source
• Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 5 paragraph 34 — “P is not to be treated for the purposes of paragraph 5(1)(a) or 15(1)(b) as having the major interest at any time during the period of 3 years beginning with the date of the inheritance.” Source
• Revenue Scotland ADS rules for particular transactions and buyers — “However, inherited dwellings will count towards dwellings owned by a buyer for the purposes of the ADS.” Source
• GOV.UK, SDLT linked purchases or transfers — “If 2 or more transactions are treated as linked then the buyer pays any Stamp Duty Land Tax due on the total value of all linked transactions.” Source
• Finance Act 2003 section 108 — “Transactions are ‘linked’ for the purposes of this Part if they form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them.” Source
• HMRC SDLT Manual SDLTM09766 — “If at least two of the purchased dwellings meet all three of these conditions, then the whole transaction is a ‘higher rates transaction’ and the higher rate of SDLT applies.” Source
• Finance (No. 2) Act 2024 section 7 — “The amendments made by this section have effect in relation to land transactions the effective date of which falls on or after 1 June 2024.” Source
• Finance Act 2003 section 116 — “Where six or more separate dwellings are the subject of a single transaction involving the transfer of a major interest in, or the grant of a lease over, them, then, for the purposes of this Part as it applies in relation to that transaction, those dwellings are treated as not being residential property.” Source
• GOV.UK, SDLT transferring ownership of land or property — “You pay Stamp Duty Land Tax if the chargeable consideration given in exchange for the share transfer is more than the current Stamp Duty Land Tax threshold for the property type.” Source
• Finance Act 2003 Schedule 4 paragraph 8 — “then for the purposes of this paragraph there is an assumption of that debt by the purchaser, and that assumption of debt constitutes chargeable consideration for the transaction.” Source
• GOV.UK, SDLT transferring ownership of land or property — “In these cases there’s no need to tell HMRC about the transfer, even if the value is more than the Stamp Duty Land Tax threshold.” Source
• Finance Act 2003 Schedule 4ZA paragraph 3 — “Condition D is that the purchased dwelling is not a replacement for the purchaser's only or main residence.” Source
• GOV.UK, residential property SDLT rates — “If you have not sold your main residence on the day you complete your new purchase, you’ll have to pay higher rates.” Source
• GOV.UK, SDLT for corporate bodies — “There is a 5% surcharge on residential properties bought by companies.” Source
• GOV.UK, non-residential and mixed SDLT rates — “A ‘mixed’ property is one that has both residential and non-residential elements, for example a flat connected to a shop, doctor’s surgery or office.” Source
• HMRC Spotlight 63 — “HMRC’s view is that this scheme does not work.” Source
• Finance Act 2003 section 76 — “In the case of every notifiable transaction the purchaser must deliver a return (a ‘land transaction return’) to the Inland Revenue before the end of the period of 14 days after the effective date of the transaction.” Source
• Finance Act 2003 section 86 — “Tax payable in respect of a land transaction must be paid not later than the filing date for the land transaction return relating to the transaction.” Source
• GOV.UK, check if you need to send an SDLT return — “You’ll need to send your return within 14 days of the effective date of the transaction, even if you do not owe any tax.” Source
• Finance Act 2003 Schedule 10 paragraph 3 — “(a)£100 if the return is delivered within three months after the filing date, and” Source
• Land and Buildings Transaction Tax (Scotland) Act 2013 section 29 — “The return must be made before the end of the period of 30 days beginning with the day after the effective date of the transaction.” Source
• Welsh Government, pay Land Transaction Tax — “You must pay within 30 days from the day after the effective date of transaction.” Source