Stamp Duty on Buy-to-Let: The Complete 2026 Guide

Buying a buy-to-let property in England or Northern Ireland means paying Stamp Duty Land Tax (SDLT) at the higher rates for additional dwellings. These are the standard residential rates plus 5 percentage points on each band. The surcharge rose from 3% to 5% on 31 October 2024. Buyers who are not UK resident pay a further 2%.

Standard SDLT rates and the higher rates

From 1 April 2025 the standard residential rates are:

• Up to £125,000: 0%
• £125,001 – £250,000: 2%
• £250,001 – £925,000: 5%
• £925,001 – £1,500,000: 10%
• Over £1,500,000: 12%

When you buy an additional residential property (which includes any buy-to-let), each band is 5 percentage points higher:

• Up to £125,000: 5%
• £125,001 – £250,000: 7%
• £250,001 – £925,000: 10%
• £925,001 – £1,500,000: 15%
• Over £1,500,000: 17%

Worked example: £200,000 buy-to-let

• First £125,000 at 5% = £6,250
• Next £75,000 at 7% = £5,250
• Total SDLT = £11,500

At the standard rates the same purchase would cost £1,500 (£75,000 at 2%). The surcharge adds £10,000, which is 5% of the whole price.

Worked example: £350,000 buy-to-let

• First £125,000 at 5% = £6,250
• Next £125,000 at 7% = £8,750
• Next £100,000 at 10% = £10,000
• Total SDLT = £25,000

At the standard rates it would be £7,500. If the buyer is not UK resident, a further 2% of the price (£7,000) is added, making £32,000.

When the higher rates don't apply

The higher rates generally do not apply if:

• You are buying your only residential property and do not own any other
• You are replacing your main residence (see the refund rule below)
• The property costs less than £40,000

The rules for couples, joint buyers and mixed-use property are detailed. Read HMRC's guidance on buying an additional property or ask a conveyancer.

Buying through a limited company

Companies always pay at least the higher rates on dwellings, because a company cannot have a main residence. If a company or other non-natural person buys a dwelling for more than £500,000, a flat rate of 17% can apply to the whole price. A relief is available for genuine property rental businesses; where it applies, the higher rates are used instead of the 17% rate. See HMRC's guidance for corporate bodies.

Non-UK-resident buyers

Since 1 April 2021, buyers who are not UK resident for SDLT purposes pay a further 2% on top of the standard or higher rates.

Scotland and Wales

SDLT only applies in England and Northern Ireland.

• Scotland has Land and Buildings Transaction Tax (LBTT). Its Additional Dwelling Supplement is 8% of the whole price for transactions from 5 December 2024. See Revenue Scotland.
• Wales has Land Transaction Tax (LTT). From 11 December 2024 the higher residential rates are 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. See the Welsh Revenue Authority.

Can I claim the extra SDLT back?

If you paid the higher rates because you had not yet sold your previous main residence, you may be able to reclaim the difference if you sell it within 3 years of buying the new one. This refund is for replacing a main residence; it does not apply to buy-to-let purchases.

SDLT is not an allowable expense

You cannot deduct SDLT from your rental income. It is, however, an acquisition cost for Capital Gains Tax, so it reduces the gain when you eventually sell.

Use our calculator

Work out SDLT for a purchase with our stamp duty calculator. It applies the 5% additional-property surcharge by default. It does not add the 2% non-resident surcharge.