Holiday Let Stamp Duty UK 2026: Rates & Reliefs

Buying a holiday let in the UK means paying more Stamp Duty Land Tax than you'd pay on a main-residence purchase. That's because any property acquisition that takes you above one residential property triggers the additional dwelling surcharge — and holiday lets count as additional dwellings.

The current rates are meaningfully higher than they were before October 2024, when the Autumn Budget increased the surcharge from 3% to 5%. This page sets out what you pay, when the rates apply, what reliefs exist, and how Scotland and Wales work differently.

This is general guidance, not tax advice. SDLT rules involve multiple conditions — always confirm your specific position with a qualified conveyancer or tax adviser before completing a purchase.

Why Holiday Lets Attract the Higher Rate

HMRC's guidance on buying an additional residential property applies the higher rates "if buying a new residential property means you'll own more than one" residential property at the end of the transaction. A holiday let is a residential property for SDLT purposes — it doesn't matter that it's let commercially or that it qualifies for business rates rather than council tax.

This means buying a holiday let in England or Northern Ireland triggers the additional-dwelling rates whether you own one other property or ten, and whether this is your first holiday let purchase or your fifth.

Current SDLT Rates for Holiday Lets (England and Northern Ireland)

Rates effective from 1 April 2025 (source: HMRC — SDLT: buying an additional residential property):

Property value	SDLT rate
Up to £125,000	5%
£125,001–£250,000	7%
£250,001–£925,000	10%
£925,001–£1.5 million	15%
Above £1.5 million	17%

How this works in practice: SDLT applies in bands, not a flat rate on the whole price — like income tax. For a holiday let bought at £350,000:

• 5% × £125,000 = £6,250
• 7% × £125,000 = £8,750
• 10% × £100,000 = £10,000
• Total SDLT: £25,000

For comparison, under the previous 3% surcharge (before October 2024), the same £350,000 purchase would have attracted a meaningfully lower SDLT bill — the exact figure depends on the then-current rate bands (which included a temporary nil-rate threshold that has since been removed). The October 2024 Budget change increased the surcharge from 3% to 5%, adding approximately £7,000 to this example at current bands.

Rate History — What Changed in October 2024

The SDLT additional dwelling surcharge has changed twice since 2016:

• April 2016: 3% surcharge introduced
• 31 October 2024 (Autumn Budget): Surcharge increased from 3% to 5%, with immediate effect for transactions completing on or after that date
• 1 April 2025: Current rate structure confirmed, with rate bands also adjusted as part of the wider SDLT reform that removed temporary nil-rate thresholds

If you exchanged before the Budget announcement but completed after 31 October 2024, the higher surcharge generally applied from completion. Specific timing issues on exchange-before-completion transactions may have different treatment — the HMRC guidance above addresses this.

Exceptions — When the Higher Rate Does Not Apply

The main exception is replacing your main residence: if you buy a new property and sell (or give away) your previous main home on the same day or before completion, the higher rates don't apply to the new purchase. This doesn't apply to holiday let buyers unless the new holiday let is replacing a main home — which is unusual.

There are additional reliefs including:

• First-time buyer relief — applies to main residences, not additional dwellings. Holiday let purchases don't qualify.
• Six or more dwellings in a single transaction — where a buyer acquires six or more dwellings in a single transaction, the transaction may be taxed at non-residential SDLT rates rather than the higher residential additional-dwelling rates. Note: Multiple Dwellings Relief (MDR), a separate provision, was abolished on 1 June 2024 and is no longer available.
• Charities relief — not relevant for individual hosts.
• Refund within 3 years — if you sell a previous main home within 3 years of a purchase where you paid the higher rate, you can claim a refund of the surcharge element.

Scotland: LBTT and the 8% Additional Dwelling Supplement

Scotland uses Land and Buildings Transaction Tax (LBTT) rather than SDLT, administered by Revenue Scotland.

The Additional Dwelling Supplement (ADS) for transactions on or after 5 December 2024 is 8% of the purchase price — applied to the total price, not in bands. This is higher than the comparable English surcharge.

On a £350,000 Scottish holiday let purchase, ADS alone would be £28,000 (8% × £350,000), before standard LBTT rates are applied on top.

Wales: Land Transaction Tax and the Additional Residential Property Rates

Wales uses Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. LTT has its own additional residential property rates for second homes and holiday lets. Check Welsh Government — Land Transaction Tax rates and bands for current rates, as these have changed and may differ from England.

Interaction with the FHL Tax Changes

The abolition of the Furnished Holiday Let tax regime in April 2025 removed several CGT reliefs (BADR, Rollover, Holdover) that formerly made holiday let disposals more tax-efficient. The SDLT surcharge operates independently of the FHL regime — it applied before abolition and continues after it. See our holiday let tax guide for the full tax picture across income, CGT, SDLT, and VAT.

Action Checklist

• Budget for additional-dwelling SDLT rates (starting at 5%) on any holiday let acquisition in England/NI — this is part of your total acquisition cost
• Check the HMRC SDLT calculator on GOV.UK to confirm your exact liability before exchange
• If purchasing in Scotland, confirm the current ADS rate with Revenue Scotland — the 8% applies to the full price, not in bands
• If purchasing in Wales, confirm current LTT rates and the additional residential property bands with the Welsh Revenue Authority
• Ask your conveyancer to confirm whether any reliefs apply to your specific transaction before completion

Sources

• GOV.UK — SDLT: buying an additional residential property
• Revenue Scotland — Land and Buildings Transaction Tax
• Welsh Government — Land Transaction Tax rates and bands

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Stamp duty rates and thresholds change — the rates above reflect the position from 1 April 2025. Always verify current rates on GOV.UK or Revenue Scotland before completing a property transaction. This is guidance only, not legal or tax advice.