Buy to Let Stamp Duty Calculator UK 2026
Buy-to-let stamp duty in the UK includes a 5% surcharge on top of standard SDLT rates. On a £300,000 BTL purchase, you’d pay £17,500 (compared to £2,500 at standard rates). Limited company purchases always pay the surcharge. The surcharge was increased from 3% to 5% in October 2024.
BTL Stamp Duty = Standard SDLT + 5% Surcharge on Entire Purchase Price
Buying a property to let out (or as a second home) triggers significantly higher stamp duty charges than a standard residential purchase. Since October 2024, the additional property surcharge has been 5%, adding tens of thousands of pounds to the cost of buy-to-let investments.
Our buy-to-let stamp duty calculator covers all scenarios including individual BTL purchases, limited company acquisitions, second homes and portfolio landlord purchases. Enter your purchase price to see the full SDLT bill.
What This Means
Your buy-to-let stamp duty includes both the standard SDLT rates and the 5% additional property surcharge applied to each band. The surcharge applies to the entire purchase price, not just the amount above the nil-rate threshold. This means the first £250,000 (which would normally be at 0%) is taxed at 5%. For limited company purchases, the surcharge always applies regardless of whether you own other properties.
Buy-to-Let SDLT Rates (2026)
Buy-to-let and additional property purchases attract the following SDLT rates in England and Northern Ireland:
| Purchase Price Band | Standard Rate | BTL/Additional Rate (+5%) |
|---|---|---|
| Up to £250,000 | 0% | 5% |
| £250,001–£925,000 | 5% | 10% |
| £925,001–£1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
The 5% surcharge was increased from 3% in October 2024 as part of the government’s measures to prioritise homeowners over investors. This represents a significant increase in acquisition costs for landlords and buy-to-let investors.
Buy-to-Let Stamp Duty Examples
Here’s what you’ll pay at common purchase prices:
| Purchase Price | Standard SDLT | BTL SDLT (with 5% surcharge) | Extra Cost |
|---|---|---|---|
| £150,000 | £0 | £7,500 | £7,500 |
| £200,000 | £0 | £10,000 | £10,000 |
| £250,000 | £0 | £12,500 | £12,500 |
| £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 | £27,500 | £65,000 | £37,500 |
The surcharge adds a minimum of 5% to every purchase, making it essential to factor this into your investment returns calculation. A £300,000 BTL property now costs £17,500 in stamp duty alone.
Limited Company Buy-to-Let Stamp Duty
Purchasing property through a limited company (SPV – Special Purpose Vehicle) has become increasingly popular among landlords. Key SDLT considerations:
- Surcharge always applies: Limited companies always pay the additional 5% surcharge on residential property purchases, regardless of whether the company already owns property. HMRC treats all company purchases as additional property acquisitions.
- No personal relief: First-time buyer relief, principal private residence relief and other personal reliefs do not apply to company purchases.
- Potential advantages: Despite the SDLT cost, buying through a limited company may offer tax advantages including corporation tax (25%) on rental profits instead of income tax (up to 45%), full mortgage interest relief (restricted for individuals since 2020), and inheritance tax planning benefits.
- Multiple purchases: For portfolio landlords buying 6+ properties in a single transaction, Multiple Dwellings Relief (MDR) may apply, though this is being reviewed and was abolished for transactions from 1 June 2024.
| Purchase Price | Individual BTL SDLT | Ltd Company SDLT | Difference |
|---|---|---|---|
| £200,000 | £10,000 | £10,000 | £0 (same rates) |
| £300,000 | £17,500 | £17,500 | £0 (same rates) |
| £500,000 | £37,500 | £37,500 | £0 (same rates) |
The SDLT cost is identical for individual and company purchases – both pay the 5% surcharge. The choice between personal and company ownership depends on income tax vs corporation tax savings, mortgage availability and long-term planning.
When You Can Reclaim the 5% Surcharge
In certain circumstances, you can claim a refund of the additional property surcharge:
- Selling your previous main home: If you purchased a new main residence before selling your existing one, you can reclaim the surcharge if you sell the old property within 3 years of the new purchase. The refund must be claimed within 12 months of the sale or 12 months of the SDLT filing date, whichever is later.
- Replacing your only or main residence: The surcharge shouldn’t apply if the property you’re buying replaces your only or main residence and you’ve sold the old one on the same day. However, timing issues and chains can sometimes result in the surcharge being charged, with a refund claimed later.
- Does NOT apply to BTL: You cannot reclaim the surcharge on a genuine buy-to-let purchase that is not replacing your main residence. The surcharge is a permanent additional cost for landlords and second home owners.
To claim a refund, use HMRC’s online form or write to the Stamp Taxes team within the time limit. Your solicitor can handle this for you, typically for a small additional fee.
Impact on Buy-to-Let Investment Returns
The increased 5% surcharge significantly affects buy-to-let investment returns. Here’s how to factor it in:
| Metric | Before Oct 2024 (3% surcharge) | After Oct 2024 (5% surcharge) | Impact |
|---|---|---|---|
| SDLT on £250,000 BTL | £7,500 | £12,500 | +£5,000 |
| SDLT on £300,000 BTL | £11,500 | £17,500 | +£6,000 |
| Break-even period (5% yield) | 7–9 months | 12–15 months | +5–6 months |
| Total acquisition cost (£300k) | ~£16,000 | ~£22,000 | +£6,000 |
The higher surcharge means BTL investors need to factor in longer break-even periods and higher upfront costs. Properties with strong rental yields (6%+) and capital growth potential remain viable investments, but the margin for error is smaller. Consider:
- Negotiating a lower purchase price to offset the stamp duty increase
- Focusing on areas with high rental yields rather than capital growth alone
- Using a limited company structure for long-term tax efficiency despite the same SDLT cost
- Exploring commercial or mixed-use properties which have different (often lower) SDLT rates