What changed in October 2024
Until 30 October 2024, the SDLT additional-property surcharge was 3% on top of standard residential rates. From 31 October 2024, it rose to 5%, increasing the cost of additional-property acquisitions by 2% of the entire purchase price.
The 5% rate applies to:
- Additional residential property purchases by UK-resident individuals
- All purchases by UK companies (including SPVs), regardless of whether it's the "first" property
- Trusts purchasing residential property in most cases
The surcharge is on top of the standard residential SDLT bands. For a typical buy-to-let purchase by a UK Ltd company, the combined effect can be 7-12% of purchase price, depending on the band.
When the 5% surcharge applies
The surcharge applies in five common scenarios:
- You already own one or more residential properties (anywhere in the world) and buy another one in the UK. This is the classic buy-to-let case.
- You're buying through a UK limited company (SPV). Companies always pay the surcharge — there's no "first property" exemption for corporate buyers.
- Holiday home or second home purchase alongside your main residence.
- You're buying a property for an adult child to live in, while you still own your own residence.
- Investment purchase via a trust in most circumstances.
The surcharge does NOT apply if:
- You're replacing your only or main residence (subject to the 36-month rule below)
- You're buying a non-residential or mixed-use property
- You're buying through a qualifying institutional investor in some specific cases
- The purchase price is under £40,000 (the surcharge threshold)
Calculation examples
For a 2025/26 buy-to-let purchase, total SDLT = standard residential SDLT + 5% surcharge on the full purchase price.
£200,000 BTL property
- Standard SDLT: £0 on first £125k (0%) + £75k × 2% = £1,500
- 5% additional-property surcharge on £200k: £10,000
- Total SDLT: £11,500
£300,000 BTL property
- Standard SDLT: £0 on £125k + £125k × 2% + £50k × 5% = £5,000
- 5% additional-property surcharge on £300k: £15,000
- Total SDLT: £20,000
£500,000 BTL property
- Standard SDLT: £0 + £2,500 + £12,500 + £15,000 = £30,000
- (Standard bands: 0% to £125k, 2% £125k-£250k, 5% £250k-£925k)
- 5% additional-property surcharge on £500k: £25,000
- Total SDLT: £55,000
Full HMRC SDLT calculator: tax.service.gov.uk/calculate-stamp-duty-land-tax.
The 36-month replacement rule
If you're replacing your main residence (selling your old home and buying a new one), the 5% surcharge generally doesn't apply — even if you own a buy-to-let alongside.
But if there's a gap between selling the old and buying the new home, you have to pay the surcharge upfront and reclaim it later. The 36-month replacement rule:
- You can reclaim the 5% surcharge if you sell your previous main residence within 36 months after buying the new one.
- OR you can avoid paying the surcharge initially if you sold your previous main residence within 36 months before the new purchase.
Reclaim is via HMRC's online refund form. You'll need proof of sale of the old property and confirmation it was your previous main residence.
This rule is especially relevant for landlords moving home — if you own a BTL portfolio + your own home, selling your home and buying a new one can still benefit from the replacement exemption.
Non-UK resident additional 2% surcharge
Non-UK-resident buyers of UK residential property pay an additional 2% surcharge on top of standard rates and on top of the 5% additional-property surcharge if applicable.
So a non-UK-resident buying an additional UK residential property:
- Standard residential SDLT (banded)
- + 5% additional-property surcharge on full purchase price
- + 2% non-resident surcharge on full purchase price
For a £300,000 BTL bought by a non-UK resident: £5,000 + £15,000 + £6,000 = £26,000 total SDLT.
"Non-UK resident" for SDLT purposes is defined narrowly — being present in the UK for 183+ days in the 12 months before purchase qualifies as resident. The rules differ slightly from the income-tax residency tests.
Joint owners — special rules
For joint purchasers, the 5% surcharge applies if any one of them owns another residential property. So if one spouse owns a BTL solely and the other spouse buys a property jointly with them, the surcharge applies — even if the new property would be the joint-purchase spouse's only home.
The exception: if the new property is replacing the joint-purchase spouse's only or main residence and the other spouse already owned the BTL before they married, the rules are complex. Specialist conveyancer advice needed.
For unmarried partners (cohabiting but not married/civil-partnered), each is considered separately. The surcharge applies based on whether each individual owns another residential property at the date of purchase.