Question 1

Why do landlords pay more stamp duty than home buyers?

Accepted Answer

Since April 2016, anyone buying an additional residential property in England or Northern Ireland - including almost all buy-to-let purchases - pays a 5% surcharge on top of the standard SDLT bands. This was introduced specifically to cool investor demand, and it applies whether you already own one property or twenty, as long as the new purchase will not be your only home.

Question 2

Does a limited company pay the same stamp duty as an individual landlord?

Accepted Answer

Yes - company purchases of residential property are taxed at the same additional-property rates as personal buy-to-let purchases, including the 5% surcharge. The one difference is that a company can never claim first-time buyer relief, regardless of whether it is a newly formed company that has never owned property before.

Question 3

Can I get a refund if I sell my main home within three years?

Accepted Answer

Often, yes. If you buy a new main residence before selling your previous one, you pay the additional-property rate up front, but you can usually reclaim the 5% surcharge portion if you sell your previous main home within three years of completing the new purchase. This does not apply to buy-to-let purchases where you do not intend to live in the property - the refund route is specifically for replacing your main residence.

Question 4

How is SDLT actually calculated across the bands?

Accepted Answer

SDLT is a slice-based tax, not a flat rate on the whole price. Each band of the purchase price is taxed at its own rate, so moving into a higher band only increases the rate on the portion of the price within that band, not on the whole amount. This calculator shows you the exact breakdown so you can see how much falls into each band and why the effective rate ends up lower than the top band rate.

Question 5

Do these rates apply in Scotland and Wales?

Accepted Answer

No. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT), both with their own bands, rates and additional-property surcharges that differ from the England and Northern Ireland SDLT system shown here. If your purchase is in Scotland or Wales, use the Revenue Scotland or Welsh Revenue Authority calculators for an accurate figure.

Stamp Duty Calculator for Buy-to-Let

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Stamp Duty Calculator for Buy-to-Let

Your results

Frequently asked questions

Why do landlords pay more stamp duty than home buyers?−

Does a limited company pay the same stamp duty as an individual landlord?+

Can I get a refund if I sell my main home within three years?+

How is SDLT actually calculated across the bands?+

Do these rates apply in Scotland and Wales?+

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Related guides