Stamp Duty for Buy-to-Let UK 2026: Rates, Surcharge & Calculator
Complete guide to Stamp Duty Land Tax for buy-to-let purchases in 2026. Current rates, 5% additional property surcharge, and how to calculate your bill.
The Latch Team
Editorial
Stamp Duty Land Tax (SDLT) is one of the largest upfront costs when purchasing a buy-to-let property in England and Northern Ireland. Since October 2024, the additional property surcharge has increased from 3% to 5%, making buy-to-let purchases significantly more expensive.
Understanding the current SDLT rates, how the surcharge applies, and what reliefs may be available can help you budget accurately and avoid unexpected costs. Scotland and Wales have their own property transaction taxes with different rates and thresholds.
This guide covers the 2025/26 SDLT rates for buy-to-let purchases, worked examples at various price points, the 5% additional property surcharge, available reliefs, and the differences in Scotland and Wales. Latch records your SDLT payment as a purchase cost against each property, which is important for your Capital Gains Tax calculation when you eventually sell.
Standard SDLT Rates (England and Northern Ireland)
The standard SDLT rates for residential property purchases from 1 April 2025 are:
| Property Price Band | SDLT Rate |
|---|---|
| £0 - £125,000 | 0% |
| £125,001 - £250,000 | 2% |
| £250,001 - £925,000 | 5% |
| £925,001 - £1,500,000 | 10% |
| Over £1,500,000 | 12% |
These are the standard rates for purchasing your main residence. If you are buying a buy-to-let property (which is an additional property), the additional property surcharge applies on top of these rates.
Note: The temporary SDLT thresholds that were raised during 2022-2025 have now reverted. From 1 April 2025, the nil-rate band for standard purchases returns to £125,000 (from £250,000).
The 5% Additional Property Surcharge
From 31 October 2024, anyone purchasing an additional residential property (including buy-to-let) pays a 5% surcharge on top of the standard SDLT rates. This was increased from 3% in the Autumn Budget 2024.
The surcharge applies to the entire purchase price, not just the amount above a threshold. The combined rates for buy-to-let purchases are:
| Property Price Band | Standard Rate | Additional Property Rate (incl. 5% surcharge) |
|---|---|---|
| £0 - £125,000 | 0% | 5% |
| £125,001 - £250,000 | 2% | 7% |
| £250,001 - £925,000 | 5% | 10% |
| £925,001 - £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
Significant cost increase: The increase from 3% to 5% surcharge means a £250,000 buy-to-let purchase now costs £10,000 more in SDLT than it did before October 2024. This is a material change that affects investment returns.
Try our free Stamp Duty Calculator to calculate SDLT for any purchase price. It automatically applies the 5% buy-to-let surcharge and shows the breakdown by band.
Worked Examples at Different Price Points
Here is the SDLT payable on buy-to-let purchases at common price points (including the 5% additional property surcharge):
Example 1: £150,000 Property
| Band | Calculation | SDLT |
|---|---|---|
| £0 - £125,000 at 5% | £125,000 x 5% | £6,250 |
| £125,001 - £150,000 at 7% | £25,000 x 7% | £1,750 |
| Total SDLT | £8,000 |
Example 2: £250,000 Property
| Band | Calculation | SDLT |
|---|---|---|
| £0 - £125,000 at 5% | £125,000 x 5% | £6,250 |
| £125,001 - £250,000 at 7% | £125,000 x 7% | £8,750 |
| Total SDLT | £15,000 |
Example 3: £400,000 Property
| Band | Calculation | SDLT |
|---|---|---|
| £0 - £125,000 at 5% | £125,000 x 5% | £6,250 |
| £125,001 - £250,000 at 7% | £125,000 x 7% | £8,750 |
| £250,001 - £400,000 at 10% | £150,000 x 10% | £15,000 |
| Total SDLT | £30,000 |
Example 4: £600,000 Property
| Band | Calculation | SDLT |
|---|---|---|
| £0 - £125,000 at 5% | £125,000 x 5% | £6,250 |
| £125,001 - £250,000 at 7% | £125,000 x 7% | £8,750 |
| £250,001 - £600,000 at 10% | £350,000 x 10% | £35,000 |
| Total SDLT | £50,000 |
Quick Reference Summary
| Purchase Price | SDLT (Buy-to-Let) | SDLT as % of Price |
|---|---|---|
| £100,000 | £5,000 | 5.0% |
| £150,000 | £8,000 | 5.3% |
| £200,000 | £11,500 | 5.8% |
| £250,000 | £15,000 | 6.0% |
| £300,000 | £20,000 | 6.7% |
| £400,000 | £30,000 | 7.5% |
| £500,000 | £40,000 | 8.0% |
| £750,000 | £65,000 | 8.7% |
When the Surcharge Does Not Apply
The 5% additional property surcharge does not apply in the following circumstances:
- Replacing your main residence: If you are selling your existing main home and buying a new one, the surcharge does not apply — even if there is a temporary overlap where you own both. You must sell the old property within 36 months.
- Properties under £40,000: If the purchase price is below £40,000, no SDLT is payable at all (including no surcharge).
- Caravans, mobile homes, and houseboats: These are not residential property for SDLT purposes.
- First-time buyers purchasing their only property: First-time buyer relief applies to their main residence (though this is not relevant for buy-to-let).
Refund for delayed sale: If you pay the surcharge because you temporarily own two properties, but sell your previous main home within 36 months of buying the new one, you can apply for a refund of the surcharge. You must apply within 12 months of the sale of the old property or 12 months after the SDLT filing date, whichever is later.
SDLT for Limited Company Purchases
When a limited company purchases a residential property, the 5% additional property surcharge always applies, regardless of whether the company already owns other properties. Companies are treated as additional property purchasers by default.
Additionally, if a company purchases a residential property worth more than £500,000, it may be subject to the Annual Tax on Enveloped Dwellings (ATED) unless the property is rented commercially. Commercially rented properties are exempt from ATED, so this does not affect most buy-to-let company purchases.
Multiple Dwellings Relief — Abolished
Multiple Dwellings Relief (MDR) was a relief that allowed purchasers buying two or more residential properties in a single transaction to calculate SDLT based on the average price per property. This often significantly reduced the SDLT payable on portfolio acquisitions.
MDR was abolished on 1 June 2024. It is no longer available for any residential property transactions completing on or after that date. This removal significantly increases the SDLT cost of purchasing multiple properties in a single transaction.
Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland has its own property transaction tax called LBTT, administered by Revenue Scotland. The rates and thresholds differ from SDLT:
| Property Price Band | Standard LBTT Rate | Additional Dwelling Supplement |
|---|---|---|
| £0 - £145,000 | 0% | 8% |
| £145,001 - £250,000 | 2% | 10% |
| £250,001 - £325,000 | 5% | 13% |
| £325,001 - £750,000 | 10% | 18% |
| Over £750,000 | 12% | 20% |
Scotland's Additional Dwelling Supplement (ADS): Scotland increased its ADS from 6% to 8% from 5 December 2024. This is significantly higher than the 5% surcharge in England and makes buy-to-let purchases in Scotland considerably more expensive in terms of upfront tax.
Wales: Land Transaction Tax (LTT)
Wales has its own Land Transaction Tax, administered by the Welsh Revenue Authority. The rates for residential property are:
| Property Price Band | Standard LTT Rate | Higher Rates (Additional Property) |
|---|---|---|
| £0 - £225,000 | 0% | 5% |
| £225,001 - £400,000 | 6% | 11% |
| £400,001 - £750,000 | 7.5% | 12.5% |
| £750,001 - £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
Wales has a 5% higher rate surcharge for additional properties, the same as England. However, the base rates and thresholds differ, so the total tax payable is not the same.
Comparison Across UK Nations
Here is a comparison of the total tax payable on a £250,000 buy-to-let purchase across the three UK tax jurisdictions:
| Jurisdiction | Tax Name | Total Tax on £250,000 BTL |
|---|---|---|
| England & NI | SDLT | £15,000 |
| Scotland | LBTT + ADS | £22,100 |
| Wales | LTT | £12,500 |
Scotland is significantly more expensive for buy-to-let purchases due to the 8% Additional Dwelling Supplement. Wales is currently the cheapest jurisdiction for purchases under £400,000.
SDLT and Your Investment Return
SDLT is a significant upfront cost that directly affects your investment return. When evaluating a buy-to-let purchase, you should factor in SDLT as part of your total acquisition cost.
For a £250,000 property with a 75% mortgage (£187,500), you need to fund:
| Cost | Amount |
|---|---|
| Deposit (25%) | £62,500 |
| SDLT (buy-to-let rate) | £15,000 |
| Solicitor fees | £1,500 |
| Survey | £500 |
| Mortgage arrangement fee | £1,000 |
| Total cash required | £80,500 |
The SDLT alone represents 18.6% of your cash outlay. If the property yields 5% gross (£12,500 per year), it would take over a year of gross rent just to recover the SDLT cost.
Latch tip: When you add a property in Latch, record the SDLT as a purchase cost. Latch includes this in your total investment calculation and uses it for CGT reporting when you sell, ensuring you claim the full allowable cost against your gain.
SDLT Payment and Filing Deadlines
SDLT must be paid within 14 days of the completion date. Your solicitor normally handles this as part of the conveyancing process.
If SDLT is not filed and paid within 14 days:
- Automatic £100 penalty if more than 3 months late
- Further £200 penalty if more than 6 months late (in addition to the first penalty)
- Tax-related penalties of up to 100% of the unpaid tax for deliberate non-compliance
- Interest accrues on unpaid SDLT from the filing deadline
In practice, your solicitor will submit the SDLT return and arrange payment from the completion funds, so you rarely need to worry about the deadline directly. However, always confirm that your solicitor has filed the return.
How Latch Records SDLT
Latch allows you to record your SDLT payment against each property as part of the acquisition costs. This serves two purposes:
- Investment tracking: Your total investment in each property includes SDLT, giving you an accurate picture of returns
- CGT calculation: SDLT is an allowable cost for Capital Gains Tax. When you sell, Latch includes it in the gain calculation automatically
Recording SDLT accurately at the time of purchase saves significant effort years later when you come to sell the property and need to calculate your capital gain.
Record Every Purchase Cost with Latch
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Get Started with LatchDisclaimer: This guide is for informational purposes only and does not constitute tax advice. SDLT rates, thresholds, and surcharges are subject to change by government policy. The information reflects rates applicable from 1 April 2025 in England and Northern Ireland, and current rates in Scotland and Wales as of February 2026. Always confirm current rates with HMRC, Revenue Scotland, or the Welsh Revenue Authority before completing a purchase. Last updated February 2026.
