Investment Property Stamp Duty Calculator 2025
Calculate SDLT on investment property purchases including the 5% surcharge
Calculate Your Stamp Duty
5% Investment Property Surcharge
Investment property 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
- Same rate as buy-to-let and second homes
- No first-time buyer relief available
- Companies may face 15% rate on properties over £500,000
Investment Property SDLT Rates 2025
These rates include the 5% additional property surcharge that applies to all investment property purchases when you already own property.
Investment Property Stamp Duty Rates (with 5% surcharge)
| Band | Rate |
|---|---|
| Up to £250,000 | 5% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5m | 15% |
| Over £1.5m | 17% |
Rates include the 5% additional property surcharge. Standard rates are 5% lower on each band.
Example Investment Property Calculations
Calculation Breakdown
England & NI (SDLT) • Additional Property
Property Price
£300,000
Up to £250,000
on £250,000
£7,500
£250,001 to £925,000
on £50,000
£4,000
Additional Property Surcharge
+£15,000
Total Tax Due
£11,500
Effective rate: 3.83%
Calculation Breakdown
England & NI (SDLT) • Additional Property
Property Price
£500,000
Up to £250,000
on £250,000
£7,500
£250,001 to £925,000
on £250,000
£20,000
Additional Property Surcharge
+£25,000
Total Tax Due
£27,500
Effective rate: 5.50%
Investment Property vs Buy-to-Let: Stamp Duty Comparison
From a stamp duty perspective, investment properties and buy-to-let properties are treated identically. Both attract the same 5% surcharge:
| Factor | Investment Property | Buy-to-Let |
|---|---|---|
| 5% Surcharge | Yes | Yes |
| First-Time Buyer Relief | No | No |
| Company 15% Rate (over £500k) | Possible | Possible |
| Refund if Replacing Main Residence | No | No |
The main differences between investment property and buy-to-let relate to income tax treatment, not stamp duty. Consult a tax advisor for guidance on ongoing tax implications.
Investment Property Stamp Duty Costs
| Property Price | Standard Rate | Investment Rate | Surcharge 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 Investment Property Through a Limited Company
Many property investors consider purchasing through a Special Purpose Vehicle (SPV) limited company. The stamp duty implications are:
- •5% surcharge still applies - companies pay the same additional rate as individuals on residential property
- •15% flat rate - applies to residential properties over £500,000 bought by companies (with exemptions for genuine property rental businesses running on a commercial basis)
- •ATED - Annual Tax on Enveloped Dwellings may apply to company-owned properties valued over £500,000
- •Mortgage interest - companies can fully offset mortgage interest against rental profits, unlike individuals
The decision between personal and company ownership depends on your tax situation, investment strategy, and long-term plans. Always consult a qualified tax advisor.
Official Resources
Understanding Investment Property Stamp Duty in 2025
When purchasing an investment property in England or Northern Ireland, you'll pay Stamp Duty Land Tax (SDLT) at higher rates than standard residential purchases. The 5% additional property surcharge (increased from 3% in October 2024) applies to all investment properties, regardless of whether you intend to let them out or hold them for capital appreciation.
What Counts as an Investment Property?
For stamp duty purposes, an investment property is any residential property that won't be your main residence. This includes:
- Buy-to-let properties rented to tenants
- Properties held for capital growth without letting
- Holiday lets and short-term rental properties
- Second homes and holiday homes
- Properties bought through limited companies or SPVs
The 5% Investment Property Surcharge
The additional 5% surcharge applies if, at the end of the day of purchase, you'll own two or more residential properties. Unlike the standard SDLT bands, this surcharge is added to every band, starting from £0. This means:
- On a £300,000 investment property: £15,000 surcharge alone (5% of £300,000)
- The surcharge is added ON TOP of the standard SDLT calculation
- Properties owned anywhere in the world count towards the two-property test
Investment Property Stamp Duty Calculator: How It Works
Our investment property stamp duty calculator applies the correct rates automatically when you select "Additional Property" as your buyer type. The calculation includes:
- Standard SDLT rates applied in bands
- 5% surcharge on the entire purchase price
- Clear breakdown showing the surcharge component
Stamp Duty Calculator Investment Property: Regional Differences
If your investment property 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 - lower than both England and Scotland.
Can You Reduce Investment Property Stamp Duty?
Unlike main residence purchases, there's no first-time buyer relief for investment properties. However, some strategies may help:
- Mixed-use properties: Commercial rates may apply if the property has a commercial element, potentially reducing the overall tax
- Multiple Dwellings Relief: Buying multiple properties in one transaction may qualify for relief (being phased out in 2024)
- Timing: Selling your only other property before completing means you won't own two properties simultaneously
Investment Property vs Buy-to-Let: Tax Implications
While stamp duty is identical for investment properties and buy-to-lets, the ongoing tax treatment differs:
- Rental income: Taxed as income for both, but allowable expenses differ between personal and company ownership
- Capital gains: Personal ownership benefits from annual CGT allowance; companies pay corporation tax on gains
- Mortgage interest: Companies can fully deduct mortgage interest; individuals receive only a 20% tax credit
Use our stamp duty calculator for investment property to see exactly how much you'll pay, then consult a tax advisor for comprehensive planning advice covering income tax, capital gains, and inheritance tax implications.
Frequently Asked Questions
What is the stamp duty on investment property?
Is investment property stamp duty the same as buy-to-let?
Can I avoid the 5% surcharge on investment property?
Should I buy investment property personally or through a company?
Does the investment property surcharge apply to my first property?
How does stamp duty affect investment property yields?
Related Calculators
Stamp Duty Calculator
Calculate stamp duty for any property type in England
Buy-to-Let Calculator
Specific calculator for buy-to-let property purchases
Second Home Calculator
Calculate stamp duty for second homes with the 5% surcharge
Stamp Duty Refund
Check if you can claim back the additional 5% surcharge