Historical guide: written for the circumstances and rules of October 2025. This article forms part of our backdated information archive; it is not a live product quotation.
Buying another property in Hampshire needs a different stamp duty calculation from buying your only home. Whether you are considering a rental in Portsmouth, a second home near the coast or keeping your existing property when you move, the tax can make a substantial difference to the cash needed. This October 2025 guide concerns Stamp Duty Land Tax in England, not the separate property taxes in Scotland or Wales.
The higher rates in October 2025
For a typical additional residential purchase subject to the higher rates, the bands from 1 April 2025 are 5% on the first £125,000, 7% on the next £125,000, 10% on the portion from £250,000 to £925,000, 15% from £925,000 to £1.5 million and 17% above that. These are marginal bands: each rate applies to the relevant slice, not automatically the whole price. Special rules, transitional provisions and reliefs can alter the outcome, so the conveyancer should confirm the transaction-specific liability.
An example at a £300,000 purchase price
Assume an ordinary £300,000 additional residential purchase falls entirely within those higher-rate rules, with no extra non-resident surcharge or relief. The first £125,000 produces £6,250 of SDLT. The next £125,000 produces £8,750, and the remaining £50,000 produces £5,000. The total is £20,000. That tax is separate from your deposit, legal costs and mortgage fees. If a property budget has only allowed for the deposit, this is the sort of gap that can derail a purchase even when mortgage affordability looks comfortable.
It is not just about being a landlord
The rules look at ownership and the transaction, not simply whether the property will be rented out. Interests in residential property elsewhere in the world can count. Buying jointly means considering each purchaser, and spouses or civil partners can be treated together under the rules even when only one name appears on the purchase. Certain low-value interests and other exceptions need careful checking. Tell your conveyancer about existing ownership, inherited shares and overseas property at the outset. Leaving something off a mortgage application does not change the tax position.
Replacing your main residence is different
You may avoid the additional rates when genuinely replacing your main residence and meeting the conditions. But buying the new home before selling the old one can mean paying the higher rates initially. If you subsequently dispose of the previous main home within the required period and satisfy the rules, a refund of the higher-rate element may be available. Do not treat that potential refund as cash available on completion. You still need a plan for funding the initial payment and must meet the relevant claim deadline.
What about limited companies and non-residents?
Companies buying residential property generally face the higher rates, with further corporate rules potentially relevant to certain purchases. Incorporating is not a simple method of avoiding the additional-property tax and can bring other costs and tax consequences. A separate 2% non-UK resident surcharge can apply on top of residential rates where its tests are met. These rules use specific definitions, not just nationality or the location of your employer. Take qualified tax and legal advice before choosing an ownership structure or transferring an existing property into a company.
Keep the tax and mortgage calculations separate
A buy-to-let lender may require a substantial deposit and assess expected rent against a stressed interest calculation. Neither that deposit nor a lender's valuation includes money for your SDLT bill. Plan for valuation, legal work, insurance, repairs and periods without rent too. If you intend to raise money against another home to fund the purchase, both borrowing commitments must be assessed and the deposit source accepted. A tax calculation showing what is payable does not establish that the wider investment is affordable or suitable.
Confirm the figures before you commit
Use HMRC's published higher-rate guidance and ask your conveyancer for a written calculation using the intended completion date, ownership history and purchase structure. SDLT is generally reported and paid within 14 days of the effective date, usually completion, and your conveyancer will normally explain how the funds are collected. Rules have changed recently, so an old calculator result or a friend's previous bill may be misleading. We can help you understand the borrowing and cash budget, while leaving the formal tax assessment to the appropriate professional.
Talk it through with Easy Mortgages
If you would like to understand how this relates to your own plans, contact Easy Mortgages for an initial conversation. We can explain the next steps and the information a personalised review would need, without assuming a particular product is right for you.
This is general information, not personal mortgage, insurance, legal or tax advice. Rules, lender criteria and products can change after October 2025. Any recommendation requires an assessment of your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured on it.
Further reading: HMRC higher-rate SDLT guidance. Official guidance may subsequently be updated; the explanation above is framed for the archive date.