Holiday let stamp duty (SDLT) calculator
Estimate the banded SDLT due on a holiday let purchase in England and Northern Ireland, including the higher-rate surcharge, with the effective rate and a band breakdown.
Your estimate
Includes the higher-rate (additional dwelling) surcharge. Illustrative only. Not a quote or advice. Not an offer of finance.
Powered by PropertyCalculators.ai.
How the holiday let stamp duty calculator works
A holiday let is residential property, so SDLT is charged at the residential rates, in slices, with each part of the price taxed at its own rate rather than the whole price at a single rate. Because a holiday let is usually a second property or an additional dwelling, the higher-rate surcharge of 5 percent is added to every band. That gives 5 percent on the slice up to 125,000 pounds, 7 percent from 125,001 to 250,000 pounds, 10 percent from 250,001 to 925,000 pounds, 15 percent from 925,001 to 1.5 million pounds and 17 percent above 1.5 million pounds. We add the bands to get the total SDLT due, then divide by the price to show the effective rate.
The formula taxes each slice at its own higher-rate percentage and sums them. The effective rate equals total SDLT divided by price multiplied by one hundred. The figures assume the higher-rate surcharge applies, which is the usual position for a serviced accommodation buyer who already owns a home.
An important note on jurisdiction
These bands apply to England and Northern Ireland only. Scotland uses Land and Buildings Transaction Tax, or LBTT, and Wales uses Land Transaction Tax, or LTT, each with their own thresholds, rates and additional dwelling surcharges. The figures here are a guide for budgeting and should be confirmed with a solicitor, who will also handle any reliefs and your specific surcharge position. Once you have the tax budgeted, size the deposit and monthly cost with our holiday let mortgage calculator.
Worked example
On a 450,000 pound holiday let bought as an additional dwelling, the first 125,000 pounds is taxed at 5 percent which is 6,250 pounds, the next 125,000 pounds at 7 percent which is 8,750 pounds, and the remaining 200,000 pounds at 10 percent which is 20,000 pounds. The total SDLT is 35,000 pounds, an effective rate of 7.78 percent. We always tell buyers to set this cash aside alongside the deposit and confirm it with their solicitor before exchange.
Holiday let stamp duty calculator: common questions
How is stamp duty calculated on a holiday let?
A holiday let is residential property, so a freehold purchase in England and Northern Ireland is charged at the residential SDLT rates. Because it is usually a second property or an additional dwelling, the higher-rate surcharge of 5 percent is added to every band. The calculator applies those higher-rate bands and adds them so each slice is taxed at its own rate.
Does the higher-rate surcharge always apply to a holiday let?
It applies where the holiday let is an additional dwelling, which is the usual position for an investor who already owns a home. If it will be your only residential property the standard residential rates may apply instead, so confirm your own position with a solicitor. This calculator shows the higher-rate figure, which is the safe assumption for most serviced accommodation buyers.
Does SDLT apply across the whole UK?
No. SDLT applies in England and Northern Ireland only. Scotland uses Land and Buildings Transaction Tax and Wales uses Land Transaction Tax, both with their own bands and additional dwelling surcharges. If the property you are buying is in Scotland or Wales the figure here will not match, so always confirm the local position with your solicitor.
Buying a holiday let?
Send us the deal and we will come back with a view on fundability and likely terms within one working day.