LEGAL
The additional-property SDLT surcharge, how to avoid it accidentally
- 5 min read
- 1 March 2026
The additional-property surcharge adds 5% to every SDLT band when you own any other residential property (anywhere in the world, freehold or leasehold) at the moment of completion.
When it applies
– You own your main home and buy a second home → surcharge. – You're moving home but haven't sold your existing one yet → surcharge (but you can claim a refund, see below). – Your partner owns property and you buy jointly → surcharge, even if you've never owned. – You inherited a share of a property over two years ago → usually counts.
How to avoid it
– Sell your existing home before completing on the new one. Timing is everything. If both transactions happen on the same day, the order matters, and your solicitor will sequence them carefully. – If you genuinely can't sell first (chain issues), you'll pay the surcharge up front and claim a refund when you sell the old home, provided you sell within three years of completing on the new one.
Claiming the refund
– You have 12 months from the date of sale of your previous main residence (or 12 months from filing your original SDLT return, whichever is later) to claim. – You do it via HMRC's online form. Your solicitor can file it for you, or you can file yourself. – Refunds typically come through in 4 to 8 weeks.
What doesn't count as "additional property"
– Small interests inherited under £40,000. – Properties owned via a trust where you're only a beneficiary (complex, get advice). – A property you're replacing as your main residence and have sold or are selling simultaneously.
Surcharge rate last reviewed 26 August 2026 against GOV.UK Stamp Duty Land Tax rates. This rate has changed twice since 2024, so check the official page before relying on a figure here.
