Summer is one of the busiest times for holiday let investments in the UK. With the rise of staycations and short-term rentals through platforms like Airbnb and Vrbo, more buyers are snapping up coastal cottages, countryside retreats, and city flats to turn into profitable holiday homes.
But before you jump into the booming short-term rental market, it’s crucial to understand the Stamp Duty Land Tax (SDLT) implications. Purchasing a holiday let is considered a second home, meaning you’ll likely pay more in tax than you would on a main residence.
In this guide, we break down what holiday let investors need to know about SDLT in 2024 — especially if you’re buying during the busy summer season.
🏠 What Counts as a Holiday Let?
A holiday let is typically a furnished residential property that’s rented out on a short-term basis to tourists or travellers. This includes:
Coastal cottages
Lakeside lodges
Countryside barns
Urban flats in city centres
Any second home used primarily for rental income
Even if you only plan to let it out part of the year and use it yourself the rest of the time, it still qualifies as a second residential property under SDLT rules.
💷 Stamp Duty Rates for Holiday Lets in 2024
Holiday lets are subject to standard SDLT residential rates, plus a 3% second-home surcharge on the entire purchase price.
Current SDLT Rates + Surcharge:
| Price Band | Base SDLT | Surcharge | Total SDLT |
|---|---|---|---|
| Up to £250,000 | 0% | 3% | 3% |
| £250,001–£925,000 | 5% | 3% | 8% |
| £925,001–£1.5m | 10% | 3% | 13% |
| Over £1.5m | 12% | 3% | 15% |
Example:
Buying a holiday let for £500,000:
First £250,000 @ 3% = £7,500
Next £250,000 @ 8% = £20,000
Total SDLT = £27,500
🏖️ Why Summer Matters for Holiday Let Purchases
The summer months (June–September) are peak season for both holiday bookings and property purchases in popular rental hotspots. That means:
🏡 Prices may be higher due to seasonal demand
💼 Competition among investors can drive bidding wars
📅 Completion timelines may be tight — important when planning SDLT payments
Buying in summer can be a strategic move for generating immediate income, but it also means budgeting carefully for higher purchase costs, including SDLT.
✅ Tips to Budget Smartly for Holiday Let Stamp Duty
Use a Stamp Duty Calculator
Get an accurate estimate of what you’ll owe, including the surcharge.Don’t Forget the Entire Purchase Price
The 3% surcharge applies to the full value of the property — not just the portion above the threshold.Factor in Additional Fees
Holiday lets often require furnishing, marketing, and management — add these into your overall investment plan.Consider Commercial Alternatives
If your property qualifies as a commercial investment (used primarily as a business and available for letting 210+ days/year), you may be able to pay non-residential SDLT rates, which are often lower.Work with a Specialist Solicitor
Holiday lets can raise complex tax issues — it’s best to work with a solicitor or accountant familiar with SDLT rules for second homes and furnished holiday lets (FHLs).
💡 Are There Any Reliefs for Holiday Let Buyers?
Generally, SDLT reliefs are limited for second-home buyers. However, certain circumstances may allow partial savings:
Mixed-use properties (e.g., property with commercial space) may qualify for lower rates.
Portfolio relief for buyers purchasing multiple dwellings at once may reduce the average SDLT cost.
Refinancing or restructuring through a company may open different SDLT structures — though these come with their own legal and financial risks.
📌 Final Thoughts
Holiday lets can be a fantastic source of income and long-term value, but they come with higher upfront costs — especially in summer when demand and prices peak. Stamp Duty is one of the largest expenses, and understanding how the surcharge works will help you plan more effectively and avoid unpleasant surprises.
With a clear budget and professional advice, your summer property purchase can be both a smart investment and a personal escape.
