If you are buying a rental property in England or Northern Ireland, Stamp Duty Land Tax (SDLT) is almost always the biggest single cost you pay on completion. Because a buy-to-let is treated as an additional property, you pay the standard residential rates plus a surcharge on the whole purchase price.
This guide sets out the current buy-to-let SDLT rates, walks through a worked example, and explains the extra rules that catch some buyers out. Rates below apply to England and Northern Ireland only — Scotland uses LBTT and Wales uses LTT, which are calculated differently.
How much stamp duty do you pay on a buy-to-let?
On a buy-to-let in England or Northern Ireland you pay the standard residential SDLT rate for each price band plus a 5% surcharge on the entire purchase price. The surcharge has applied since 31 October 2024 and sits on top of every band.
SDLT is a tiered tax: each rate applies only to the portion of the price that falls inside its band, not to the whole amount. For a second or subsequent residential property, the 5% surcharge is added to the standard rate for every band — including the portion below the usual nil-rate threshold.
What are the buy-to-let SDLT rates in 2025?
From 1 April 2025 the standard nil-rate threshold reverted to £125,000. For a buy-to-let, add the 5% additional-property surcharge to each standard band, giving effective rates of 5%, 7%, 10%, 15% and 17%.
The table below shows the combined rates for an additional residential property (buy-to-let or second home) purchased on or after 1 April 2025.
| Portion of purchase price | Standard rate | + 5% surcharge = buy-to-let rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5m | 10% | 15% |
| Above £1.5m | 12% | 17% |
Rates effective from 1 April 2025, England and Northern Ireland. The 5% surcharge has applied to additional-property purchases since 31 October 2024.
Can you show a worked example?
On a £250,000 buy-to-let bought after 1 April 2025, you pay 5% on the first £125,000 (£6,250) and 7% on the next £125,000 (£8,750) — a total SDLT bill of £15,000. That is an effective rate of 6% of the price.
Here is how that figure is built up, band by band:
- First £125,000 at 5% = £6,250
- Next £125,000 (£125,001–£250,000) at 7% = £8,750
- Total SDLT = £15,000
For comparison, a home mover buying the same £250,000 property as their only residence would pay standard rates only: 0% on the first £125,000 and 2% on the next £125,000, totalling just £2,500. The surcharge is the difference. You can check any price with our free SDLT calculator before you make an offer.
When does the 5% surcharge apply?
The 5% surcharge applies when, at the end of the day of completion, you own two or more residential properties and are not replacing your main residence. It catches nearly all buy-to-let and second-home purchases of £40,000 or more.
Key points that decide whether the surcharge bites:
- It applies if you already own another residential property anywhere in the world, not just in the UK.
- Married couples and civil partners are treated as a single unit — one partner's existing property can trigger the surcharge for the other.
- If you are genuinely replacing your main home and there is an overlap, you may pay the surcharge first and reclaim it later, subject to time limits.
- Purchases under £40,000 are outside the surcharge entirely.
Do non-residents and companies pay more?
Yes. A buyer who is not UK-resident for SDLT purposes may pay a further 2% on top of the surcharged rates. Companies buying residential property can face different flat rates above a set threshold, so corporate purchases need specialist advice.
The 2% non-resident surcharge stacks on the rates in the table above, so a non-resident buying a buy-to-let could pay effective rates starting at 7% in the lowest band. Whether you count as non-resident depends on the days you spent in the UK around the transaction, not simply your nationality.
What about limited company purchases?
Many landlords now buy through a limited company. A company generally pays the same additional-property surcharge as an individual, but purchases of a single dwelling above a higher-value threshold can fall under a separate flat rate of tax. Because the rules interact with mortgage interest relief and corporation tax, model the whole picture before deciding on a structure.
SDLT is only the upfront cost. Factor in Capital Gains Tax when you eventually sell — the rate depends on your income and the gain. Planning both ends of the deal helps you judge the true return.
Is stamp duty on a buy-to-let tax deductible?
No — SDLT is not an allowable expense against your rental income for income tax. However, it is generally added to the property's acquisition cost, which can reduce your Capital Gains Tax when you sell the property later.
Keep your completion statement and SDLT return on file. When you dispose of the property, the stamp duty you paid forms part of your base cost and lowers the taxable gain. You can estimate that future liability with a Capital Gains Tax calculator. Tools like PAM keep these acquisition documents in one vault so the figures are ready when you file.
How and when do you pay SDLT?
Your solicitor or conveyancer normally files the SDLT return and pays the tax on your behalf within 14 days of completion. The money is due even if you owe nothing, because a return must still be submitted for most purchases.
In practice you transfer the SDLT to your solicitor before completion, and they handle HMRC. Missing the 14-day deadline triggers penalties and interest, so build the cost into your deposit and fee planning from the outset. PAM's compliance and document tracking helps landlords keep completion paperwork and key dates in one place across a portfolio.