Stamp Duty on a Holiday Home: What You Need to Know in 2026/7

Buying a holiday home is exciting. But it’s important to understand the full cost. One of the biggest upfront expenses to consider is stamp duty on a holiday home, especially if you already own a property.

Below, we’ll explain how stamp duty works in 2026 – and where holiday parks can offer something different.

Key takeaways at a glance:

• Since the rule changes of April 2025, buying a second property – including a holiday cottage or holiday let – usually means paying higher stamp duty rates, including an additional 5% surcharge.
• However, not all holiday properties are treated in the same way. Standard residential stamp duty often doesn’t apply to static caravans on licensed holiday parks.
• That difference is one reason many buyers are now exploring holiday park ownership as an alternative to a bricks-and-mortar second home.

What is stamp duty on a holiday home?

Stamp Duty Land Tax (SDLT) is the tax you pay when buying property in England and Northern Ireland.

If you already own a home and buy another property – whether it’s a cottage by the sea, a countryside lodge or a buy-to-let – you’ll usually pay:

• Standard stamp duty rates

plus

• An additional 5% surcharge for second properties

That surcharge applies to:

• Holiday homes
• Buy-to-let properties
• Most residential holiday lets

Stamp Duty on a holiday let

Many buyers assume that because a property is rented out as a short-term holiday let, it might avoid the second home surcharge.

In most cases, it doesn’t.

So whether you’re buying for personal use or planning to rent it out as a furnished holiday let, the stamp duty position is broadly the same.

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What are the current stamp duty rates? (2026)

Since April 2025, if you’re buying an additional property, you pay:

• 5% on the first £125,000
• 7% on the portion between £125,001 and £250,000
• 10% up to £925,000
• Higher rates above that

For many buyers, this makes stamp duty on holiday home purchases one of the biggest upfront costs to consider.

Is a static caravan classed as a second home?

This is one of the most common questions we hear at Lovat Parks. The answer depends on how the static caravan is owned and structured.

• If you’re buying a traditional residential property, the second home surcharge applies.
• But many holiday lodges and static caravans on licensed holiday parks (like Lovat’s) are not classed as standard residential property in the same way as bricks-and-mortar homes.

In many holiday park models, you are purchasing a holiday unit on a licence agreement rather than a freehold residential property, which can mean no stamp duty is payable at all.

This is one reason buyers explore holiday park lodges.

Why buyers are looking beyond traditional second homes

With higher stamp duty on a holiday let and second property purchases, many buyers are rethinking their options.

Traditional second homes now mean:

• Higher upfront SDLT
• Possible council tax premiums
• Reduced tax benefits for furnished holiday lets (since the FHL regime ended in 2025)

Comparing traditional second homes to park ownership

If you’re weighing up your options, here’s how the two routes typically compare:

Traditional Second Home (House or Cottage)

• Subject to standard residential stamp duty
• 5% additional property surcharge if you already own a home
• Ongoing council tax (often with second home premiums)
• Full property maintenance responsibility
• Usually higher purchase price

Holiday Park Lodge or Static Caravan

• Often not classed as traditional residential property
• Standard residential stamp duty may not apply in many cases
• Located within a managed park environment
• Designed specifically for holiday use
• Optional letting support available at selected parks

Ownership structures vary, so always confirm details before purchase.

For many, a holiday park property offers the lifestyle of a second home – without some of the financial weight that now comes with traditional second property ownership.

Could a holiday park property be right for you?

Our luxury holiday lodges are set in picturesque countryside and coastal locations across the UK.

With Lovat, you can expect:

• Thoughtfully designed parks
• Luxury lodges and holiday homes ready to enjoy from day one
• No traditional residential upkeep worries
• A welcoming community feel

For buyers who don’t plan to use their holiday home all year round, letting options are also available at selected parks. Love to Let (our letting scheme) can help you generate income from your lodge when you’re not using it, making ownership more flexible and potentially helping to offset running costs.

Read more about the steps to ownership with Lovat Parks.

FAQs: Stamp duty and holiday lets

What are the new stamp duty rules from April 2025?

The changes have now taken effect:

• Stamp duty is paid on purchases of £125,000 and over.
• A 5% surcharge applies to additional properties.
• Holiday homes and holiday lets are treated like other second homes for SDLT.

In short, stamp duty holiday second homes rules are now firmly back in place.

How do I avoid stamp duty on a buy-to-let property?

There are very few legitimate ways to avoid it.

You may be able to:

• Reclaim the 5% surcharge if you sell your previous main home within 36 months.
• Avoid SDLT if the property is not legally classed as residential property (for example, some holiday park structures).

Professional advice and doing your research is essential.

Learn more about the costs of owning a holiday home at Lovat Parks.

What is the 10 year rule for holiday lets?

The ‘10 year rule’ usually refers to older capital gains tax reliefs linked to furnished holiday lets (FHL).

Now that the FHL regime has ended (from April 2025), those specific advantages are no longer available in the same way. Holiday lets are generally treated like other residential investment properties for tax.

You might also like…

• Lodge or Caravan? Our Family Guide to UK Holiday Ownership 
• How Owning A Static Caravan Differs From Other Holiday Homes
• Finance for Coastal Lodge Ownership in 2026 
• New vs Used Holiday Caravan? Quick Guide to Choose Right