Stamp Duty on a Second Property: The Surcharge Is 5% Now
The additional property surcharge rose from 3% to 5%, and the temporary thresholds ended in March 2025. On a £300,000 buy-to-let the bill is now £20,000.
Two changes have made second-property purchases markedly more expensive, and plenty of published guidance has not caught up with either. The temporary thresholds ended on 31 March 2025, and the additional property surcharge went from 3% to 5% on 31 October 2024.
The standard bands
| Portion of price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5m | 10% |
| Above £1.5m | 12% |
These are England and Northern Ireland. Scotland charges LBTT and Wales charges LTT, on different bands entirely.
The surcharge
Buying a property that leaves you owning more than one, without replacing your main residence, adds 5% to every band — including the nil rate band. That last point is what makes it expensive at the lower end.
On £300,000:
- Standard: £0 + £2,500 + £2,500 = £5,000
- With the surcharge: £6,250 + £8,750 + £5,000 = £20,000
The surcharge alone is £15,000. Under the old 3% rate the same purchase came to £14,000, so the change cost buy-to-let purchasers £6,000 on a fairly ordinary property.
It applies to purchases of £40,000 or more, tested at the end of the day of completion.
First-time buyers
Relief gives nothing to pay on the first £300,000 and 5% between £300,000 and £500,000. Above £500,000 it is lost entirely — there is no taper, so a buyer at £500,001 pays the standard rates on the whole price.
The temporary thresholds of £425,000 and £625,000 ended on 31 March 2025 and no longer apply to anything.
Getting the surcharge back
If you paid the surcharge because you bought before selling your old home, you can reclaim it — provided the previous main residence is sold within three years. The refund is claimed from HMRC and is not automatic; there is a deadline for making the claim and people miss it.
Non-residents
A further 2% applies to buyers not present in the UK for at least 183 days in the twelve months before purchase. It stacks with the additional property surcharge, so a non-resident buying an investment property pays both.
Work it out first
Stamp Duty is due within 14 days of completion and is rarely something a buyer has budgeted precisely. Our calculator covers the standard rates, first-time buyer relief and both surcharges, and shows the band-by-band arithmetic so you can see where the figure comes from.
Getting help with this
AJH Accountants handles property for clients across the UK. We deal with HMRC, tell you what you can claim, and file on time, so nothing rests on you remembering a deadline. See how the service works, ask for a fixed-fee quote, or call the office on 01204 840303.
Originally published at ajhaccountant.co.uk/blog/stamp-duty-second-property-surcharge.