Additional property surcharge
Since 31 October 2024 the surcharge on additional dwellings is 5% of the whole price — up from 3%.
Who it applies to
Anyone who will own more than one residential property at the end of the day of purchase (buy-to-let, second homes, most overseas investors). It applies to purchases of £40,000 or more.
How it affects your return
The 5% is charged on the entire purchase price, on top of standard rates, and for non-residents it stacks with the 2% non-resident surcharge. On a £300,000 purchase the additional-property surcharge alone is £15,000.
Common mistakes
- Thinking the surcharge only applies to the slice above a threshold — it applies to the whole price.
- Overlooking that replacing a main residence can exempt you, but pure investors cannot.
- Using the old 3% figure — it rose to 5% on 31 October 2024.
Investor action checklist
- Assume 5% on the full price for any additional dwelling.
- Check main-residence-replacement rules if this genuinely replaces your home.
- Factor the surcharge into your cash-required and yield calculations.
Disclaimer. This page is for general education only and is not tax, legal, mortgage, or investment advice. UK tax rules change and depend on your personal circumstances. Always consult a qualified UK tax adviser before making a decision.
Disclaimer. The information on Brick.sg is for general education and market research only. It is not financial, investment, tax, mortgage, or legal advice. Property investments involve risk, and returns are not guaranteed. Always seek independent professional advice before buying UK property.