Stamp duty on a second home or buy-to-let
How much extra you pay when buying an additional property, and when you can get it back.
The short answer
If you buy a second home or a buy-to-let in England or Northern Ireland, you pay extra stamp duty on top of the normal rates. Since 31 October 2024 the extra amount is 5% of the price. On a £250,000 buy-to-let that makes the stamp duty about £15,000 instead of £2,500, assuming no first-time buyer relief applies.
The rates from 1 April 2025
These are the rates for an additional residential property in England and Northern Ireland:
- Up to £125,000: 5%
- £125,001 to £250,000: 7%
- £250,001 to £925,000: 10%
- £925,001 to £1.5 million: 15%
- Over £1.5 million: 17%
Each rate is charged only on the slice of the price within that band, like income tax. Scotland (Land and Buildings Transaction Tax) and Wales (Land Transaction Tax) have their own taxes and rates.
A worked example
On a £300,000 additional property: 5% of the first £125,000 is £6,250, 7% of the next £125,000 is £8,750 and 10% of the last £50,000 is £5,000. The total is £20,000. Compare it with the standard rates using the stamp duty calculator.
When the higher rate applies
It generally applies when you buy a residential property costing over £40,000 and you will own more than one property after the purchase, and you are not replacing your main home. Companies buying residential property also pay it. There are exceptions and special cases, so check the rules for your situation.
Replacing your main home
If you buy a new home before selling your old one, you will usually pay the higher rate at first. You can claim back the extra if you sell your previous main home within three years. You must make the claim within 12 months of the sale or of filing the return, whichever is later. See GOV.UK.
Other costs to budget for
Stamp duty is only part of it. Landlords also pay tax on rental profit and may pay Capital Gains Tax when they sell, see Capital Gains Tax on a second home. Mortgage lenders often ask for a bigger deposit on buy-to-let, and fees and legal costs apply too.
Where to learn more
This guide is for information only and is not tax advice.