Second Home Stamp Duty UK Calculate Your Costs
Unlock the True Cost of Your UK Second Home Use Our Stamp Duty Calculator to Plan Smart and Avoid Surprises
Buying a second home, whether it's a holiday cottage by the sea, a city flat for weekends, or a buy-to-let investment, is a major financial step. But beyond the exciting property viewings and mortgage applications lies a significant cost that can catch many buyers off guard: the higher rate of Stamp Duty.
This extra tax can add thousands, or even tens of thousands, of pounds to your upfront costs. Forgetting to budget for it can cause serious problems for your purchase plans.
That's why we've created a simple tool to give you instant clarity. Our free Stamp Duty (Second Home) calculator is designed to demystify this complex tax, providing a clear and accurate estimate of what you'll owe. Use it to plan your budget with confidence and avoid any nasty financial surprises.
How to Use Our Second Home Stamp Duty Calculator
Getting your personalised stamp duty calculation is incredibly straightforward. The tool does all the complicated maths for you. Just provide a few key details:
Step 1: Enter the Property's Purchase Price
Type in the amount you have agreed to pay for the property in pounds (£). For example, 350000.
Step 2: Select the Property's Location Stamp duty rules and rates are different depending on where you are in the UK. Choose from the dropdown menu:
- England & Northern Ireland (Stamp Duty Land Tax - SDLT)
- Scotland (Land and Buildings Transaction Tax - LBTT)
- Wales (Land Transaction Tax - LTT)
Your Results - Explained
Once you hit "Calculate," you'll see a clear breakdown of your costs:
- Standard Stamp Duty: This is the baseline tax you would pay on the property.
- Higher Rate Surcharge: This is the additional tax you owe for buying a second property.
- Total Stamp Duty Payable: This is the final, all-in figure you need to budget for.
What Exactly is Stamp Duty on a Second Home?
When you buy an additional residential property in the UK, you usually have to pay a higher rate of stamp duty. This is essentially a surcharge on top of the normal stamp duty rates.
- In England and Northern Ireland, this is a 3% surcharge on top of the standard Stamp Duty Land Tax (SDLT) rates.
- In Scotland, it's a 6% Additional Dwelling Supplement (ADS) on the total purchase price for properties over £40,000.
- In Wales, higher Land Transaction Tax (LTT) rates apply, which include a 4% surcharge on each band.
This higher rate applies to most purchases of an additional home, such as:
- Holiday homes
- Buy-to-let properties
- A second home for a family member if your name is on the property deeds
The key rule is that if you own another property anywhere in the world at the end of the day of your new purchase, the higher rate will likely apply.
Second Home Stamp Duty Rates Explained
The amount of tax you pay is tiered. You pay a certain percentage on different portions of the property's price. Our Stamp Duty (Second Home) handles these calculations automatically, but here are the rates for your reference.
England & Northern Ireland: Higher SDLT Rates
| Property Price Band | Higher Rate (Standard + 3%) |
|---|---|
| Up to £250,000 | 3% |
| £250,001 - £925,000 | 8% |
| £925,001 - £1.5m | 13% |
| Over £1.5m | 15% |
Worked Example: You buy a second home in Manchester for £300,000.
- 3% on the first £250,000 = £7,500
- 8% on the remaining £50,000 = £4,000
- Total Stamp Duty = £11,500
Scotland: LBTT + Additional Dwelling Supplement (ADS)
In Scotland, you pay the standard LBTT rates plus a 6% ADS on the entire purchase price (if it's over £40,000).
| Property Price Band | Standard LBTT Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 - £250,000 | 2% |
| £250,001 - £325,000 | 5% |
| £325,001 - £750,000 | 10% |
| Over £750,000 | 12% |
Worked Example: You buy a second home in Glasgow for £300,000.
- ADS: 6% of £300,000 = £18,000
- Standard LBTT:
- 0% on the first £145,000 = £0
- 2% on the next £105,000 = £2,100
- 5% on the final £50,000 = £2,500
- Total Standard LBTT = £4,600
- Total Stamp Duty = £18,000 (ADS) + £4,600 (LBTT) = £22,600
Wales: Higher LTT Rates
| Property Price Band | Higher LTT Rate (Standard + 4%) |
|---|---|
| Up to £180,000 | 4% |
| £180,001 - £250,000 | 7.5% |
| £250,001 - £400,000 | 9% |
| £400,001 - £750,000 | 10.5% |
| £750,001 - £1.5m | 11.5% |
| Over £1.5m | 14% |
Worked Example: You buy a second home in Cardiff for £300,000.
- 4% on the first £180,000 = £7,200
- 7.5% on the next £70,000 = £5,250
- 9% on the final £50,000 = £4,500
- Total Stamp Duty = £16,950
Common Mistakes to Avoid
- Forgetting to Budget for It: The most common mistake is simply not factoring this significant cost into your budget from the start. It can derail your purchase if you don't have the funds set aside.
- Misunderstanding the 'Main Residence' Rule: If you are buying a new main home but there's a delay in selling your old one, you will have to pay the higher rate upfront. You can claim a refund, but you need the cash flow to cover it initially.
- Ignoring Regional Differences: Assuming the 3% surcharge in England applies to Scotland or Wales is a big error. As shown above, the systems and percentages are very different.
- Forgetting Other Costs: Stamp duty is just one cost. Remember to budget for solicitor fees, surveys, removal costs, and of course, insurance for your new property.
What to Do After You Get Your Result
Your calculation is the first step in smart financial planning. Here’s what to do next:
- Update Your Budget: Add the total stamp duty figure to your overall property purchase budget. This gives you a true picture of the upfront cash you'll need.
- Speak to Your Solicitor: Your solicitor or conveyancer will handle the stamp duty payment on your behalf. Share your calculation with them and confirm the final amount.
- Arrange Specialist Insurance: A second home has different insurance needs than your main residence, especially if it will be empty for long periods or used as a holiday let. As expert insurance brokers, WeCovr can help you compare quotes for specialist second home or landlord insurance to ensure you have the right protection in place.
Related Protection: Planning for the Unexpected
Calculating property costs is vital, but protecting your family's financial future is just as important. Owning multiple properties increases your financial commitments, making robust protection a sensible consideration.
While this calculator focuses on tax, it's worth thinking about personal insurance. WeCovr can help you explore options like private medical insurance, which gives you fast access to eligible medical treatment for acute conditions that arise after you take out your policy. It's important to know that UK private medical insurance does not cover pre-existing or chronic conditions.
Furthermore, a life insurance policy can be essential for covering mortgages and providing a financial safety net for your loved ones if the worst were to happen. At WeCovr, we can often secure discounts on other types of cover when you purchase a life or private medical insurance policy. As a bonus, our customers get complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app, to help you stay on top of your health goals.
Frequently Asked Questions (FAQ)
1. Can I get a refund on the second home stamp duty surcharge? Yes, in most cases. If you buy a new main residence but are delayed in selling your previous main residence, you'll have to pay the higher rate upfront. If you then sell that previous main home within 36 months, you can apply to HMRC for a full refund of the surcharge.
2. Do I pay the higher rate if I help my child buy a property? Yes, if you already own a property and your name is on the title deeds of the property you are helping your child buy (for example, as part of a joint mortgage), the higher rate of stamp duty will apply to the purchase.
3. What if I'm buying with someone who is a first-time buyer? It doesn't matter. If a property is purchased jointly and one of the buyers already owns another property, the higher second home rates apply to the entire transaction. You cannot split the transaction to avoid the surcharge.
4. Does the surcharge apply to inherited properties? You do not pay stamp duty when you inherit a property directly. However, if you own a main home and also own a share of 50% or more in an inherited property, you will have to pay the higher stamp duty rate on any future property you buy.
Ready to find out your exact costs? Take control of your budget and plan your property purchase with total confidence.
Use our free Stamp Duty (Second Home) calculator now, and contact WeCovr today for a quote to protect your new investment.
