Find your best local estate agent Start here
If you’re buying a buy to let property as a second home in the UK, you’ll need to pay a stamp duty surcharge. We look at the exceptions, common questions and provide a second home stamp duty calculator so you know where you stand.
Yes. Stamp duty is payable if you buy property in England and Northern Ireland worth more than £40,000. And if buying the house or flat means you’ll own more than one property, you’ll usually pay a 5% surcharge on the rate of stamp duty. This is known as the Additional Stamp Duty Rate.
The most common example is someone who owns their own home and wants to invest in a Buy to Let property.
You can find out more about the main stamp duty tax with our dedicated guide to stamp duty land tax and stamp duty for second homes.
Find out instantly how much Buy to Let stamp duty you will need to pay with our free stamp duty calculator
If you’re buying a Buy to Let in England and Northern Ireland, you’ll pay a stamp duty surcharge of 5%. This was increased from 3% in the October 2024 Budget. Here are the stamp duty rates you’ll pay when buying an additional property compared to standard stamp duty rates.
| Purchase price | Stamp duty rate | Stamp duty rate for additional properties |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 up to £1.5 million | 10% | 15% |
| Over £1.5 million | 12% | 17% |
The below table shows how much stamp duty you’ll pay if you’re buying a investment property and need to pay the additional stamp duty rate.
| Purchase price | Buy to Let stamp duty bill |
|---|---|
| £150,000 | £8,000 |
| £200,000 | £11,500 |
| £250,000 | £15,000 |
| £300,000 | £20,000 |
| £350,000 | £25,000 |
Stamp duty in Scotland is known as ‘land and buildings transaction tax’ (LBTT). From 16 December 2022 the LBTT rates in Scotland are:
| Purchase price | LBTT | LBTT rate for additional properties |
|---|---|---|
| Up to £145,000 | 0% | 6% |
| £145,001 to £250,000 | 2% | 8% |
| £250,001 to £325,000 | 5% | 11% |
| £325,000 to £750,000 | 10% | 16% |
| Over £750,000 | 12% | 18% |
| Purchase price | Buy to Let stamp duty bill |
|---|---|
| £100,000 | £6,000 |
| £150,000 | £9,100 |
| £200,000 | £13,100 |
| £250,000 | £17,100 |
In Wales stamp duty is called Land Transaction Tax. These are the additional property stamp duty rates (LTT) in Wales from December 11, 2024
| Purchase price of property | Stamp duty rate for additional properties |
|---|---|
| Up to £180,000 | 5% |
| £180,001 up to £250,000 | 8.5% |
| £250,001 to £400,000 | 10% |
| £400,001 to £750,000 | 12.5% |
| £750,001 to £1.5m | 15% |
| Over £1.5m | 17% |
| Purchase price | Buy to Let stamp duty bill |
|---|---|
| £100,000 | £5,000 |
| £150,000 | £7,500 |
| £200,000 | £10,700 |
| £250,000 | £14,950 |
A booming Buy to Let market in the UK has contributed to a housing crisis that is pushing home ownership beyond the reach of millions of people.
In 2015 the government at the time announced that a new 3% additional stamp duty rate would be introduced for anyone buying a second home. The current government announced a further increase in the higher rate from 3% to 5% from 31st October 2024.
There are around 2.8m Buy to Let landlords in the UK, according to HMRC, and if you are one of them then this tax won’t affect the property you already own.
But, if you are thinking of purchasing a Buy to Let property or a second home then the Additional Stamp Duty Rate could affect how much it will cost. See our guide for more detail on tax when buying a house.
The additional cost of stamp duty for Buy to Lets does make the cost of buying an additional property more expensive. So it’s important that you factor in the stamp duty bill as it could be a factor in deciding whether property investment is the best choice for you.
But there’s lots more to consider, such as Buy to Let mortgage options if you need to take out a mortgage to buy a Buy to Let – it’s a good idea to speak to a fee-free mortgage broker to find out more. It may also be a good idea to speak to an Independent Financial Advisor (IFA) before you take the plunge in order to make sure a buy-to-let property is the best place to put your savings.
Get fee free Buy-To-Let mortgage advice from our award winning mortgage partners at L&C
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
The additional stamp duty rate is payable within 14 days of your completion date, at the same time as your main stamp duty bill. In most circumstances your solicitor or conveyancer will carry out this process for you.
You can find out more with our Step-by-Step Guide to Buying a Home.
Your main residence for stamp duty purposes is the place where you and your family spend most of your time. HMRC will assess this by looking at where you work, where your children are registered at school and where you vote.
If you own a property abroad and want to buy an investment property in the UK, then the extra stamp duty rate will still apply.
When it comes to stamp duty married couples are treated as a single unit. So, it doesn’t matter whose name your properties are in, if you as a couple own more than one at the end of the transaction then the additional stamp duty rate applies.
If you aren’t married, then you could avoid the additional stamp duty rate if only one of you is named on the deeds of your main residence and the other partner buys the investment property in their name alone.
If you don’t already own any property and are looking to invest in a Buy to Let as a first time buyer, then you won’t pay the additional stamp duty rate as you will only own one property. Note that you will not qualify for first-time buyer stamp duty relief as it can only be used for a property you intend to live in.
You won’t have to pay the additional rate on investments purchased abroad as stamp duty is only payable on UK property.
Stamp duty isn’t payable on inherited properties. But, if you go on to buy another property you may have to pay the additional rate if it will result in you owning more than one property.
Buy to Let stamp duty refers to the Stamp Duty Land Tax (SDLT) that is applied on a property you buy intending to rent it out.
Yes. If you’re a non-resident and want to purchase a Buy to Let property in England or Northern Ireland, you can expect to pay a 2% surcharge on top of the Buy to Let stamp duty rates.
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ, authorised and regulated by the Financial Conduct Authority (FRN: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of Seopa Ltd, for home insurance, authorised and regulated by the Financial Conduct Authority (FCA FRN: 313860).
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of LifeSearch Limited, an Appointed Representative of LifeSearch Partners Ltd, authorised and regulated by the Financial Conduct Authority. (FRN: 656479).
Independent Financial Adviser service is provided by Unbiased, who match you to a fully regulated, independent financial adviser, with no charge to you for the referral.
Bridging Loan and specialist lending service provided by Chartwell Funding Limited, registered office 5 Badminton Court, Station Road, Yate, Bristol, BS37 5HZ, authorised and regulated by the Financial Conduct Authority (FRN: 458223). Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
