Stamp Duty Second Home Calculator (UK 3% Surcharge)

UK Second Home Stamp Duty Guide 2026/27

What do I need to know about The 3% Surcharge?

From 1 April 2016, an additional 3% Stamp Duty Land Tax applies to purchases of additional residential properties in England and Northern Ireland (similar surcharges in Scotland and Wales). The surcharge applies on top of standard SDLT rates: SDLT bands 2026/27 (England/NI): 0% up to £250,000. 5% on £250,001-£925,000. 10% on £925,001-£1,500,000. 12% above £1,500,000. With 3% surcharge (second homes): 3% up to £250,000. 8% on £250,001-£925,000. 13% on £925,001-£1,500,000. 15% above £1,500,000. Example: a £400,000 second home incurs 3% up to £250,000 plus 8% on the remaining £150,000, a noticeably higher total than the standard rates alone.

What's the key thing to understand about Who Pays the Surcharge?

The surcharge applies when, at the end of the day of purchase, you (or your spouse/civil partner) own two or more residential properties anywhere in the world. Common scenarios that trigger surcharge: buying a second home for personal use. Buy-to-let property (personal or company name). Buying for a child but in your name. Inheriting a property and buying another. Owning property abroad and buying UK property. Owning a leasehold property (any term over 7 years counts) and buying another. Does NOT apply if replacing your only or main residence, even briefly owning two properties during a sale-and-purchase overlap, provided the old one is sold promptly.

What's the key thing to understand about Refunds and Reclaim Routes?

Sold previous main home WITHIN 3 years of buying new one: can claim refund of the 3% surcharge originally paid. Apply via gov.uk SDLT refund form. Refund typically processed within 8 weeks. Multiple Dwellings Relief (MDR): closed for transactions completed after 1 June 2024. Was used to reduce SDLT on multiple property purchases in one transaction. Granny annexes / subsidiary dwellings: complex rules — annexe may count separately for surcharge purposes, or may not, depending on the facilities and access the annexe has — a self-contained annexe with its own entrance and utilities is more likely to be treated as a separate dwelling for surcharge purposes.

What's the key thing to understand about Scotland LBTT and Wales LTT?

Scotland Land and Buildings Transaction Tax (LBTT) + Additional Dwelling Supplement (ADS): ADS is 6% (raised from 4% in December 2022). LBTT bands 2026/27: 0% to £145k. 2% £145-£250k. 5% £250-£325k. 10% £325-£750k. 12% over £750k. ADS adds 6% to all bands. £300k second home in Scotland: LBTT £4,600 + ADS £18,000 = £22,600. Significantly higher than England equivalent (£11,500). Wales Land Transaction Tax (LTT) + Higher Rate: Higher rate is 4% (was 3%). LTT bands 2026/27: 0% up to £225,000. 6% on £225,001-£400,000, with rates rising further above that threshold.