How stamp duty works for landlords
Stamp Duty Land Tax is charged in slices, like income tax. Each part of the price is taxed at the rate for its band, and the slices are added up. Buying a home when you'll own more than one, which covers almost every buy-to-let, adds a 5 percentage point surcharge to every band.
The surcharge applies to purchases of £40,000 or more. Non-UK residents pay a further 2% on top.
Worked example: a £425,000 buy-to-let
| Slice | Rate | Tax |
|---|---|---|
| First £125,000 | 5% | £6,250 |
| £125,000 to £250,000 | 7% | £8,750 |
| £250,000 to £425,000 | 10% | £17,500 |
| Total | £32,500 |
A home mover buying the same property would pay £11,250, so the surcharge costs this landlord £21,250. A first-time buyer would pay £6,250.
Questions landlords ask
Do I pay the surcharge if I'm replacing my main home?
Not if you sell your old home on or before the day you complete the new one. If you buy first and sell later, you pay the higher rates, but you can usually claim the surcharge back if you sell your previous main home within three years.
Do limited companies pay the surcharge?
Yes. Companies pay the higher rates on residential purchases. A flat 17% rate can apply to homes over £500,000 bought by companies, but property rental businesses can normally claim relief from it.
When do I have to pay?
Your solicitor files the return and pays the tax within 14 days of completion. It's normally included in their completion statement.
Is it the same in Scotland and Wales?
No. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, each with its own bands and surcharges. This calculator covers England and Northern Ireland.
Sources
Last updated 1 October 2026.