Stamp Duty Calculator for Second Homes & Buy-to-Let (2025/26)
Stamp Duty Land Tax (SDLT) is a progressive tax paid when you buy a residential property in England or Northern Ireland. While the calculation is straightforward for a main residence, it becomes significantly more expensive if you are purchasing an "additional dwelling"—such as a buy-to-let investment or a holiday home.
The Golden Rule
If at the end of the purchase day you own two or more properties and you have not sold your main residence, you must pay the 3% surcharge on the entire purchase price.
How Much is Stamp Duty on a Second Property?
The "Additional Dwelling Supplement" adds a flat 3% to every single tax band. This means there is no "tax-free" allowance for second homes valued over £40,000.
2025/26 Rates Comparison
| Property Value | Standard Rate | Second Home Rate (+3%) |
|---|---|---|
| Up to £125,000 | 0% | 3% |
| £125,001 to £250,000 | 2% | 5% |
| £250,001 to £925,000 | 5% | 8% |
| £925,001 to £1.5m | 10% | 13% |
| Over £1.5m | 12% | 15% |
Example: If you buy a £300,000 flat as a home mover, you pay roughly £5,000. As a landlord, you pay £14,000. That is a £9,000 difference purely due to the surcharge.
The Non-Resident Surcharge Explained
If you are not a UK resident for tax purposes (usually meaning you spent fewer than 183 days in the UK in the 12 months prior to purchase), you attract an additional 2% surcharge.
This surcharges stacks. If you are a non-resident buying a buy-to-let (Second Home), you pay:
Standard Rate + 3% (Second Home) + 2% (Non-Resident) = Total Surcharge of +5%.
Buy-to-Let Stamp Duty Rules & Exemptions
The £40,000 Rule: Properties purchase for less than £40,000 are exempt from SDLT entirely, including the second home surcharge. This often applies to garages, parking spaces, or small fractional shares.
Replacing Main Residence: If you buy a new main home before selling your old one, you must pay the surcharge upfront. However, if you sell your previous main residence within 36 months, you can claim a full refund of the 3% surcharge from HMRC.
Is it Worth Investing in 2026?
High Stamp Duty costs eat into your initial Return on Investment (ROI). It effectively acts as an entry fee that takes years of rental income to recoup. Before committing, run your numbers through our comprehensive Buy-to-Let Yield Calculator to see if the deal still stacks up after tax.