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Buy-to-Let Stamp Duty Calculator 2025

Calculate SDLT on BTL property purchases including the 5% surcharge

Calculate Your Stamp Duty

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5% Additional Property Surcharge

Buy-to-let purchases are subject to a 5% surcharge on top of standard SDLT rates. This applies to the entire purchase price from £0, not just amounts above thresholds.

  • Applies if you already own any residential property
  • No first-time buyer relief available for BTL
  • Same surcharge applies to second homes and holiday lets

Buy-to-Let SDLT Rates 2025

These rates include the 5% additional property surcharge that applies to all buy-to-let purchases when you already own property.

BTL Stamp Duty Rates (with 5% surcharge)

BandRate
Up to £250,0005%
£250,001 to £925,00010%
£925,001 to £1.5m15%
Over £1.5m17%

Rates include the 5% additional property surcharge. Standard rates are 5% lower on each band.

Example Buy-to-Let Calculations

Calculation Breakdown

England & NI (SDLT) • Additional Property

Property Price

£250,000

Up to £250,000

on £250,000

£7,500

Additional Property Surcharge

+£12,500

Total Tax Due

£7,500

Effective rate: 3.00%

Calculation Breakdown

England & NI (SDLT) • Additional Property

Property Price

£400,000

Up to £250,000

on £250,000

£7,500

£250,001 to £925,000

on £150,000

£12,000

Additional Property Surcharge

+£20,000

Total Tax Due

£19,500

Effective rate: 4.88%

BTL vs Standard Rates Comparison

Property PriceStandard RateBTL RateExtra Cost
£200,000£0£10,000+£10,000
£300,000£2,500£17,500+£15,000
£400,000£7,500£27,500+£20,000
£500,000£12,500£37,500+£25,000
£750,000£25,000£62,500+£37,500
£1,000,000£41,250£91,250+£50,000

Buying Through a Limited Company

Some landlords buy properties through a limited company (SPV). The stamp duty implications are:

  • •5% surcharge still applies - companies pay the same additional rate as individuals
  • •15% flat rate - applies to residential properties over £500,000 bought by companies (with some exemptions for property rental businesses)
  • •ATED - Annual Tax on Enveloped Dwellings may apply to company-owned properties over £500,000

Consult a tax advisor before deciding between personal and company ownership.

Understanding Buy-to-Let Stamp Duty in 2025

When purchasing a buy-to-let property in England or Northern Ireland, you'll pay Stamp Duty Land Tax (SDLT) at higher rates than standard residential purchases. The government introduced the 3% surcharge (now 5% from October 2024) to cool the buy-to-let market and help first-time buyers compete.

Who Pays the BTL Surcharge?

You'll pay the additional 5% stamp duty surcharge if, at the end of the day of purchase, you own two or more residential properties. This includes:

  • Buying your first buy-to-let while owning your home
  • Adding to an existing property portfolio
  • Buying a second home or holiday home
  • Properties owned abroad (they count too)

When the Surcharge Doesn't Apply

  • Properties worth less than £40,000
  • Caravans, mobile homes, and houseboats
  • Replacing your only or main residence (within 3 years)

Scotland and Wales

If your buy-to-let is in Scotland, you'll pay Land and Buildings Transaction Tax (LBTT) with a 6% Additional Dwelling Supplement (ADS) - higher than England's 5% surcharge.

In Wales, you'll pay Land Transaction Tax (LTT) with a 4% higher rate for additional properties.

Frequently Asked Questions

What is the buy-to-let stamp duty surcharge?
If you're buying a buy-to-let property and already own another property, you'll pay an additional 5% on top of standard SDLT rates. This surcharge applies to the entire purchase price, not just amounts above certain thresholds. For example, on a £300,000 buy-to-let, you'd pay the standard rate PLUS 5% of £300,000 (£15,000) as a surcharge.
Do I pay the surcharge on my first buy-to-let?
Yes, if you already own a residential property (including your main home), you'll pay the 5% surcharge on any buy-to-let purchase. The surcharge applies whenever you'll own two or more properties after the purchase completes.
Is it better to buy a BTL through a limited company?
Buying through a limited company has tax implications beyond stamp duty. Companies pay the 5% surcharge too, and for properties over £500,000, there's a potential 15% flat rate. However, companies can offset mortgage interest against profits, which individuals can't do as effectively since 2020. Consult a tax advisor for your specific situation.
Can I claim first-time buyer relief on a buy-to-let?
No. First-time buyer relief only applies to properties you intend to live in as your main residence. Buy-to-let properties do not qualify, even if it's your first property purchase.
What if I'm replacing my only buy-to-let property?
If you're selling your only buy-to-let and buying a replacement within 3 years, you can claim a refund of the 5% surcharge. You must have lived in your main residence throughout and the sold property must have been your only additional property.
Do holiday lets pay the same stamp duty as buy-to-lets?
Yes, holiday lets are treated the same as buy-to-lets for stamp duty purposes. The 5% additional property surcharge applies. However, Furnished Holiday Lets (FHLs) have different income tax treatment.

Related Calculators

Second Home Calculator

Calculate stamp duty for second homes with the 5% surcharge

Investment Property Calculator

Compare buy-to-let vs other investment property options

Stamp Duty Refund

Check if you can claim back the additional 5% surcharge

Scotland LBTT Calculator

Scottish buy-to-let rates with 6% ADS surcharge

Official Government Resources

HMRC SDLT GuideGOV.UK

Official government guidance on Stamp Duty Land Tax

Current SDLT RatesGOV.UK

Official HMRC stamp duty rates for residential property

First-Time Buyer ReliefGOV.UK

HMRC guidance on first-time buyer stamp duty relief

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