Stamp Duty Land Tax

When purchasing a Buy to Let property in England and Northern Ireland, you’ll have to pay Stamp Duty Land Tax (SDLT). You’ll need to pay in increasing portions of the property price. If you own or will own two or more properties, the higher rate of SDLT applies, however there are some scenarios where you may or may not have to pay, which is detailed below*.

The Government has temporarily increased the Stamp Duty Land Tax threshold to £500,000 for property sales in England and Northern Ireland, until 31 March 2021. Here are the rates when purchasing a buy to let property between 8 July 2020 and 31 March 2021:

Property value Standard SDLT rates Higher SDLT rates for additional properties
Up to £500,000 (excluding purchases below £40,000) 0% 3%
£500,001 to £925,000 5% 8%
£925,001 to £1.5 million 10% 13%
Over £1.5 million 12% 15%

For example:

If someone buys a property priced at £300,000 and the higher rates are applicable, here is the stamp duty land tax payable. You can also compare to see what the total would be before the Government changes on the 8 July 2020.

  Total portion amount 
(from 8 July 2020) 
Total portion amount 
(pre 8 July 2020)
£0 to £125,000 portion £3,750 £3,750
£125,001 to £250,000 portion £3,750 £6,250
£250,001 to £300,000 portion £1,500 £4,000
Total stamp duty land tax £9,000 £14,000

Stamp Duty calculator

To calculate the SDLT for your property, use the stamp duty calculator on the Money Advice Service website.

Stamp Duty calculator

Does this affect Scotland and Wales?

In Scotland, the Land and Buildings Transaction Tax (LBTT) replaced SDLT in 2015. LBTT rates also have the 3% surcharge on additional residential properties. For more information visit www.revenue.scot.

In Wales, the above rules applied from 1 April 2016 to 31 March 2018. From 1 April 2018 Land Transaction Tax (LTT) was introduced. LTT rates also have the 3% surcharge on additional residential properties. For more information visit https://beta.gov.wales/welsh-revenue-authority.


How to Let guide

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*Please note the scenarios are not exhaustive. If you're unsure how this may impact you and need more information on your personal scenario, please contact an Independent Tax Adviser at unbiased.co.uk.