SDLT: If you’ve been looking into buying a second property—whether it’s a buy-to-let, a holiday home, or somewhere for a family member to live—you’ve probably come across the dreaded extra stamp duty charge. It’s been around for a while now, but many people still ask: when did the 5% SDLT actually start?
Let’s clear that up—and take a look at why it matters, how it works, and when you might be able to get some of that money back.
Table of Contents
A Quick Recap: The Additional Property Surcharge
The government first introduced a stamp duty surcharge on additional properties on 1 April 2016. From that date, anyone buying a second residential property in England or Northern Ireland had to pay an extra 3% on top of the normal stamp duty rates.
This extra charge applies even if the main residence is abroad, or if just one person in a couple already owns a property. It doesn’t take much to get caught by the rule. That’s why it’s become such a big consideration for landlords, investors, and even people going through separation or inheritance.
Where Does the 5% Come From?
There’s often some confusion around the phrase “5% SDLT,” because people assume it’s a new, separate charge. In reality, it’s the combination of standard stamp duty rates and the 3% surcharge that pushes the overall rate on certain price bands up to 5% or more.
For instance, the standard rate for property between £250,001 and £925,000 is 5%. Add the 3% surcharge, and you’re looking at 8%. Even the portion under £250,000, which might otherwise be tax-free for first-time buyers, gets taxed at 3% if it’s an additional property.
So while “5% SDLT” isn’t technically a separate rule, it does reflect what many buyers actually end up paying on big chunks of their purchase price.
The 5% Stamp Duty Land Tax (SDLT) rate was introduced on April 6, 2011 in the United Kingdom. This rate applies to residential property purchases where the property value exceeds £1 million. Prior to this change, the highest SDLT rate was 4%. The government implemented the 5% SDLT rate as part of its effort to increase tax revenues from high-value property transactions and to support broader fiscal policies during that period.
It’s important for homebuyers, estate agents, and property investors to understand that SDLT is calculated in a tiered structure, meaning different portions of the property price are taxed at different rates. Knowing when the 5% SDLT started helps buyers determine their historical tax liability and ensures compliance when reviewing past or current property transactions. If you’re buying a property over £1 million, the 5% rate still plays a role depending on current thresholds and changes announced in recent budgets.
Can You Get a Refund?
Yes—under certain circumstances, you can claim back the surcharge. One of the most common situations is when someone buys a new main residence before they’ve sold their previous one. As long as that original home is sold within 36 months, the 3% surcharge can usually be refunded.
This is where the 5% stamp duty surcharge refund comes into play. The extra tax still needs to be paid upfront, but if you meet the criteria, you can submit a refund claim to HMRC after the sale of your old home. The deadline is typically 12 months from the sale or from the original SDLT return deadline—whichever gives you more time.
It’s not always straightforward, though. You’ll need to have kept good records and made sure the old property was genuinely your main residence. But if you’re eligible, the money can be well worth claiming back.
