Stamp duty on additional property: the surcharge explained

The additional property surcharge applies on top of standard rates, with special rules for replacing a main residence and for company buyers.

4 min read · Updated 21 August 2026

Overview

Buying a residential property that is not replacing your only or main residence generally attracts the higher rate stamp duty surcharge across the whole purchase price, in addition to the standard rates. Companies pay the surcharge on effectively every residential purchase. Where you buy before selling your existing home, the surcharge is payable up front but can be reclaimed if the previous main residence is sold within the statutory window.

Why it matters

The surcharge is often the largest single acquisition cost after the deposit, and misjudging it can undo a deal's numbers entirely.

Legal requirements

The surcharge applies to additional residential property purchases above the low value threshold.
Companies pay the higher rates on residential purchases regardless of portfolio size.
A refund is available where a previous main residence is sold within the statutory period.
Different rules and rates apply in Scotland and Wales under their own transaction taxes.

Common mistakes

Budgeting for standard rates and discovering the surcharge at exchange.
Missing the refund claim deadline after selling the former main residence.
Assuming a property owned abroad does not count towards additional property status.
Overlooking the non resident surcharge which can stack on top.

Practical guidance

Run the calculation before making an offer, including any non resident element.
Diarise both the sale window and the refund claim deadline if you buy first.
Check whether the purchase qualifies as mixed use or multiple dwellings, though the rules here are tight.
Use the correct devolved tax calculator for Scottish and Welsh purchases.

The replacement main residence rule

If you buy a new home before selling the old one, you pay the surcharge on completion and reclaim it if the former main residence sells inside the statutory window. The claim must be made within the specified time after the sale, and the refund is not automatic. Keep the completion statements for both transactions and set a reminder, because HMRC will not chase you to take your own money back.

Scotland, Wales and Northern Ireland

Scotland charges Land and Buildings Transaction Tax with an Additional Dwelling Supplement. Wales charges Land Transaction Tax with its own higher residential rates. Northern Ireland follows the stamp duty land tax rules that apply in England. Rates, thresholds and refund windows differ, so use the tax authority calculator for the jurisdiction where the property sits rather than a generic figure.

Frequently asked questions

Does the surcharge apply if I only own one other property abroad?

Yes. Property owned anywhere in the world counts when deciding whether the purchase is an additional dwelling.

Is stamp duty an allowable expense?

No, it is a capital cost. It is added to the base cost of the property and reduces the gain on eventual sale.

Do companies get any exemption?

Companies pay the higher rates on residential purchases, and very high value purchases can attract a further flat rate charge with limited reliefs for genuine letting businesses.

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This guide is general information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.