SDLT rates for a second home: the higher-rate bands
Higher-rate SDLT bands
HMRC’s manual directs readers to its online guidance for the latest rates. A purchase that meets the separate higher-rate tests uses special SDLT bands.
- Tax is calculated in slices
- The effective date matters
- The higher-rate status must be checked first
Scroll down for the full analysis.
Read the original guidance here:
SDLT rates for a second home: the higher-rate bands
If your purchase falls into the extra 5% stamp duty rules for a second home, higher SDLT bands apply, with each slice of the price taxed at its own rate rather than the whole price at once. It is a slice calculation.
What this rule is about
Separate rules class some home purchases as higher-rate purchases. Once they do, Schedule 4ZA changes the normal residential SDLT table.
This part sets the bill. It does not decide whether your purchase falls within the higher rates.
What the official source says
HMRC’s manual page does not give a rate table. Instead, it sends readers to HMRC’s online guidance for the latest rates, while the statutory table, recorded as current to 30 January 2026, sets out these bands. They are:
- the first £125,000: 5%
- the next £125,000, up to £250,000: 7%
- the next £675,000, up to £925,000: 10%
- the next £575,000, up to £1.5 million: 15%
- anything above £1.5 million: 17%
What this means in practice
You add the tax due for every band that the price reaches. A higher-rate purchase therefore pays more SDLT than one using the ordinary residential table.
- Start with the first slice of the price.
- Apply the rate for that slice only.
- Add the amounts together for the SDLT due.
How to analyse it
Ask the status question before doing the maths: is this a higher-rate purchase? The law tests that separately, including each buyer where more than one person buys.
- Check the effective date of the purchase.
- Work out whether the higher-rate rules apply.
- Use the rate table in force on that date.
Example
Using the table above, a higher-rate purchase for £200,000 gives £6,250 on the first £125,000 and £5,250 on the remaining £75,000. The total is £11,500.
This example only shows the band calculation. It does not show whether the higher rates apply.
Why this can be difficult in practice
People often look for one percentage to apply to the full price, but these bands do not work that way, and rates can change, so the date matters. Check the date.
- The higher-rate test is separate from the calculation.
- Joint buyers can change the result.
- Older purchases may use different rate tables.
Key takeaways
- Higher-rate purchases use a special SDLT table.
- Calculate the tax in price bands.
- Check the live rate table for the relevant date.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- FA 2003 section 55 — sets the standard SDLT band calculation
- FA 2003 Schedule 4ZA para 1 — substitutes higher SDLT bands for qualifying purchases
- FA 2003 Schedule 4ZA para 2 — identifies purchases treated as higher rates transactions
Official guidance
The pages below are HMRC’s guidance. Guidance is not law. It sets out how HMRC reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. HMRC can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- The statutory extract records changes known to be in force by 30 January 2026. Current rates and the transaction date must be checked against the live legislation and HMRC guidance.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- the completion or other effective date
- the amount paid for the property
- whether the purchase meets the separate higher-rates tests
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching UK Stamp Duty Land Tax (SDLT), which applies in England and Northern Ireland. MY QUESTION SDLT rates for a second home: the higher-rate bands [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - FA 2003 section 55 - sets the standard SDLT band calculation https://www.legislation.gov.uk/ukpga/2003/14/section/55/2025-11-17 - FA 2003 Schedule 4ZA para 1 - substitutes higher SDLT bands for qualifying purchases https://www.legislation.gov.uk/ukpga/2003/14/schedule/4ZA/paragraph/1/2025-11-17 - FA 2003 Schedule 4ZA para 2 - identifies purchases treated as higher rates transactions https://www.legislation.gov.uk/ukpga/2003/14/schedule/4ZA/paragraph/2/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09745 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from HMRC is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - The statutory extract records changes known to be in force by 30 January 2026. Current rates and the transaction date must be checked against the live legislation and HMRC guidance. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show Finance Act 2003 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 31 August 2026
Useful article? You may find it helpful to read the original guidance here: SDLT rates for a second home: the higher-rate bands
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