Buy-to-Let Stamp Duty Key Facts
- 5% surcharge applies on top of standard SDLT rates for buy-to-let purchases
- Surcharge applies if you already own a residential property (including your home)
- Limited companies always pay the surcharge on residential purchases ≥ £40,000
- Multiple Dwellings Relief abolished from 1 June 2024
- First-time buyer relief does not apply to buy-to-let purchases
- The surcharge was increased from 3% to 5% on 31 October 2024
Buy-to-Let SDLT Rates (2025/26)
Buy-to-let properties are classed as additional residential property, attracting the 5% surcharge on top of standard SDLT rates.
| Up to £125,000 | 5% |
| £125,001 – £250,000 | 7% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1,500,000 | 15% |
| Over £1,500,000 | 17% |
Worked Examples
| Property Price | Standard SDLT | Buy-to-Let SDLT | Surcharge Cost |
|---|---|---|---|
| £150,000 | £500 | £8,000 | £7,500 |
| £250,000 | £2,500 | £15,000 | £12,500 |
| £350,000 | £7,500 | £25,000 | £17,500 |
| £500,000 | £12,500 | £37,500 | £25,000 |
Limited Company Buy-to-Let Purchases
Many landlords use limited companies (SPVs) to hold rental property. From a stamp duty perspective:
- Companies always pay the 5% additional property surcharge on residential purchases of £40,000+
- Properties over £500,000 purchased by companies may attract the 15% flat rate (ATED-related)
- Relief from the 15% rate is available for property rental businesses, reducing the rate back to the standard + 5% surcharge
- The company does not benefit from first-time buyer relief
First-Time Landlords
If you have never owned any property and buy a buy-to-let as your first purchase, you pay standard SDLT rates (not the additional property surcharge) because you do not already own another residential property. However, first-time buyer relief does not apply because the property is not your main residence.
If you already own your home and buy a rental property, the surcharge applies because you will own two residential properties.
Multiple Dwellings Relief (Abolished)
Multiple Dwellings Relief (MDR) allowed buyers purchasing two or more dwellings in a single transaction to calculate SDLT based on the average price per dwelling. This could significantly reduce the tax bill for portfolio purchases. MDR was abolished on 1 June 2024 and is no longer available for new transactions.
Related Guides
Frequently Asked Questions About Buy-to-Let Stamp Duty
Landlords pay standard SDLT rates plus a 5% surcharge. On a £200,000 BTL, total SDLT is £11,500. On £350,000, it is £25,000. Use our calculator for exact figures.
Not for SDLT — companies always pay the 5% surcharge. However, companies benefit from full mortgage interest relief and corporation tax rates. The long-term tax savings may outweigh the upfront SDLT cost. Seek specialist advice.
Only if you already own another residential property. If the BTL is your very first property purchase, no surcharge applies (but first-time buyer relief does not apply either, since it is not your main residence).
MDR was abolished from 1 June 2024. It is no longer available for new purchases. If you completed a multi-property transaction before that date without claiming MDR, you may be able to amend your return retrospectively.
No. First-time buyer relief only applies to properties purchased as your main residence. Buy-to-let properties are investment properties and do not qualify for this relief regardless of your ownership history.