Buy-to-let stamp duty calculator

How the 5% stamp duty surcharge works

In England and Northern Ireland, buying a home when you already own one (anywhere in the world) means paying the higher rates of Stamp Duty Land Tax. Since 31 October 2024 the higher rates are the normal rates plus 5% on every band, so in practice the surcharge is 5% of the whole price.

The normal rates are 0% up to £125,000, 2% from £125,001 to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above that. Each rate only applies to the slice of the price inside its band.

Worked example: a £250,000 buy-to-let

An individual landlord buying a £250,000 buy-to-let in England pays £15,000. Without the surcharge it would be £2,500, so £12,500 is the landlord surcharge. That is an effective rate of 6% of the price.

The same purchase costs £22,100 in Scotland and £14,950 in Wales.

Scotland: LBTT and the 8% Additional Dwelling Supplement

Scotland charges Land and Buildings Transaction Tax instead of stamp duty: 0% up to £145,000, 2% to £250,000, 5% to £325,000, 10% to £750,000 and 12% above. For a buy-to-let, the Additional Dwelling Supplement (ADS) adds 8% of the whole price, since 5 December 2024.

Wales: Land Transaction Tax higher rates

Wales charges Land Transaction Tax. An additional property uses its own higher-rates table: 5% up to £180,000, 8.5% to £250,000, 10% to £400,000, 12.5% to £750,000, 15% to £1.5 million and 17% above. Unlike the main rates, there is no 0% band, so tax starts from the first pound.

Buying through a limited company

Companies pay the higher rates on every residential purchase, even their first, in all three nations: the 5% surcharge in England and Northern Ireland, the ADS in Scotland and the higher rates in Wales.

In England and Northern Ireland, a company buying a home for more than £500,000 pays a flat 17% unless a relief applies. A company that lets the property out as a rental business can usually claim property rental business relief and pay the higher rates instead. The calculator assumes that relief applies and says so.

Non-UK resident surcharge

In England and Northern Ireland, buyers who are not UK resident pay another 2% of the price on top of everything else. A non-resident landlord buying an additional property pays 7% more than the normal rates. Scotland and Wales have no non-resident surcharge.

The £40,000 rule

The surcharges only apply to purchases of £40,000 or more. Below that, a buy-to-let is taxed at the main rates, which means no tax at all in any of the three nations.

Can you get the surcharge back?

Only when the new property replaces your main home. If you pay the surcharge because you haven't sold your old home yet, and you sell it within 3 years, you can usually claim the surcharge back from HMRC, Revenue Scotland or the Welsh Revenue Authority. A buy-to-let bought on top of your home never qualifies for a refund.

Is stamp duty tax-deductible for landlords?

Not against your rent. Stamp duty is a capital cost of buying the property, not a running expense, so you can't claim it as an allowable expense against rental income. It counts as part of what you paid for the property, so it is added to your base cost and reduces the taxable gain when you sell.