Purchasing an additional residential property (e.g. holiday home, buy-to-let) attracts a surcharge: 5% in England & NI, 8% (ADS) in Scotland, and 5% in Wales. Surcharges apply if the purchase price is £40,000 or more.
Total Stamp Duty Due
£18,000
SDLT System
Surcharge Element
£14,000
5% surcharge
Effective Tax Rate
6.4%
of purchase price
Total Acquisition Cost
£298,000
price + stamp duty
Cost Breakdown
Property Purchase Price
£280,000
Base Stamp Duty
£4,000
Surcharge Surcharges
£14,000
Total Acquisition Cost£298,000
Property Price
94%
Stamp Duty
6%
🛡️
Verified for Accuracy (2026/27 Tax Year)
Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.
Advertisement
How We Calculated This
Input variables: Enter the relevant amounts, rates, or percentages in the form.
Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.
Real-World Examples
Standard Scenario
A basic calculation applying standard UK tax bands and allowances.
Calculation runs based on standard HMRC rules.
Advertisement
With Pension or Deductions
Factoring in a percentage of salary sacrifice or pension contributions.
Deductions are calculated and adjusted accordingly.
In England and Northern Ireland, purchasing an additional residential property—such as a buy-to-let investment, a holiday home, or a second property—incurs a stamp duty surcharge. This surcharge is paid on top of the standard residential SDLT rates. Standard surcharge rates are usually 3% to 5% depending on the latest UK budget announcements. The surcharge applies from the very first pound of the purchase price for additional properties, meaning even properties bought under the standard £250,000 tax-free threshold will pay the surcharge. Limited companies must pay this surcharge on all residential property purchases, regardless of how many properties the company or its directors own.
Can I claim a refund on the second home surcharge?
Yes, under specific circumstances. If you buy a new primary residence before selling your old one, you must pay the surcharge on completion because you own two properties. However, if you sell your original main residence within 36 months of purchasing the new one, you can claim a full refund of the surcharge from HMRC. You must apply for the refund within 12 months of selling the old home or within 12 months of the filing date of your SDLT return, whichever is later. The surcharge does not apply if you are simply transferring shares in a property to a spouse or civil partner, or if the property you are buying is classified as non-residential (commercial).