Second homes stamp duty
If you own a home, you may have had to pay stamp duty. But did you know that stamp duty rules are different if you buy a second home? Whether you’re buying a holiday home or a place for a relative, you might need to factor stamp duty into your costs.
What is stamp duty?
Stamp duty, or Stamp Duty Land Tax (SDLT), is a tax you pay when you buy a property worth over a certain value.
When you’re buying your first home, you might not have to pay any stamp duty if you qualify for first-time buyer relief. But, if you decide to move or buy a second home, you might need to pay SDLT.
-
Land Transaction Tax on a second property in Wales Purchase price
Land transaction tax rate
LTT rate on second home
Purchase price
Up to £180,000
Land transaction tax rate
0%
LTT rate on second home
5%
Purchase price
£180,001 and £225,000
Land transaction tax rate
0%
LTT rate on second home
8.5%
Purchase price
£225,001 and £250,000
Land transaction tax rate
6%
LTT rate on second home
8.5%
Purchase price
£250,001 and £400,000
Land transaction tax rate
6%
LTT rate on second home
10%
Purchase price
£400,001 and £750,000
Land transaction tax rate
7.5%
LTT rate on second home
12.5%
Purchase price
£750,001 to £1,500,000
Land transaction tax rate
10%
LTT rate on second home
15%
Purchase price
Over £1.5 million
Land transaction tax rate
12%
LTT rate on second home
17%
For example, if you are buying a second home for £275,000, you’ll end up paying:
- 5% (£9,000) on the first £180,000
- 8.5% (£5,950) on the next £70,000
- 10% (£2,500) on the final £25,000.
You would pay £17,450 in LTT.
For properties in Wales, you can use a Land Transaction Tax (LTT) calculator to help with your own calculations.
-
Land and Building Transaction tax on a second property in Scotland Purchase price
Land and Buildings Transaction Tax Rate
LBTT rate including ADS (8%)
Purchase price
Up to £145,000
Land and Buildings Transaction Tax Rate
0%
LBTT rate including ADS (8%)
8%
Purchase price
£145,001 and £250,000
Land and Buildings Transaction Tax Rate
2%
LBTT rate including ADS (8%)
10%
Purchase price
£250,001 and £325,000
Land and Buildings Transaction Tax Rate
5%
LBTT rate including ADS (8%)
13%
Purchase price
£325,001 and £750,000
Land and Buildings Transaction Tax Rate
10%
LBTT rate including ADS (8%)
18%
Purchase price
Over £750,000
Land and Buildings Transaction Tax Rate
12%
LBTT rate including ADS (8%)
20%
If the purchase price of the property is less than £40,000, you do not pay any LBTT.
For example, if you are buying a second home for £275,000, you’ll end up paying:
- 0% (£0) on the first £145,000
- 2% (£2,100) on the next £105,000
- 5% (£1,250) on the final £25,000.
You will then pay 8% (£22,000) for Additional Dwelling Supplement (ADS) based on the whole purchase price of the property (£275,000).
So, the total LBTT you would pay including the ADS would be £25,350.
For Scotland, use a Land and Buildings Transaction Tax calculator to help with your own calculations.
|
Purchase price |
Standard stamp duty rate |
Stamp duty rate on second homes |
|---|---|---|
|
Purchase price Up to £125,000 |
Standard stamp duty rate 0% |
Stamp duty rate on second homes 5% |
|
Purchase price £125,001 to £250,000 |
Standard stamp duty rate 2% |
Stamp duty rate on second homes 7% |
|
Purchase price £250,001 to £925,000 |
Standard stamp duty rate 5% |
Stamp duty rate on second homes 10% |
|
Purchase price £925,001 to £1,500,000 |
Standard stamp duty rate 10% |
Stamp duty rate on second homes 15% |
|
Purchase price Over £1.5 million |
Standard stamp duty rate 12% |
Stamp duty rate on second homes 17% |
If the purchase price of the property is less than £40,000, you do not pay any stamp duty.
For example, if you are buying a second home for £275,000, you’ll end up paying:
- 5% (£6,250) on the first £125,000
- 7% (£8,750) on the next £125,000
- 10% (£2,500) on the final £25,000.
You would pay £17,500 in total.
You can use the HMRC Stamp Duty Land Tax (SDLT) Calculator to help with your own calculations.
Next steps
You may also like
Remortgage calculator
Use the calculator to see if you could save by moving your mortgage to Lloyds.
