Buy-to-Let Stamp Duty: The 5% Higher Rates for Additional Dwellings
Buying a buy-to-let in England costs 5 percent more stamp duty on every slice of the price than buying a main home, because the purchase leaves you owning more than one residential property. The surcharge rose from 3 to 5 percentage points on 31 October 2024. On a £250,000 buy-to-let that is £15,000 of Stamp Duty Land Tax against £2,500 for a home mover. This guide sets out the rates, when the higher rates apply, how companies are treated, when you can claim a refund and what it means for yield.
In this guide
Stamp duty rates for a buy-to-let When the higher rates apply Replacing your main home, and refunds Paying and filing What the surcharge does to yield Worked example: a £185,000 two-bed terrace Frequently asked questions SourcesStamp duty rates for a buy-to-let
| Portion of the price | Standard rate | Higher rate, additional dwelling |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Above £1.5 million | 12% | 17% |
GOV.UK, Stamp Duty Land Tax residential property rates, checked 3 October 2026. A non-UK resident buyer usually pays a further 2% surcharge in England.
The higher rates apply where buying a new residential property means you will own more than one, and the purchase price is £40,000 or more. The 5 percent applies from the first pound, so even a £100,000 flat costs £5,000.
| Price | Home mover | Buy-to-let (higher rates) | Extra |
|---|---|---|---|
| £100,000 | £0 | £5,000 | £5,000 |
| £150,000 | £500 | £8,000 | £7,500 |
| £200,000 | £1,500 | £11,500 | £10,000 |
| £250,000 | £2,500 | £15,000 | £12,500 |
| £300,000 | £5,000 | £20,000 | £15,000 |
| £400,000 | £10,000 | £30,000 | £20,000 |
Our calculation from the rates above. Excludes first-time buyer relief and the non-resident surcharge.
When the higher rates apply
- Individuals: when at the end of the day of purchase you own two or more residential properties worth £40,000 or more each, anywhere in the world, and are not replacing your main residence.
- Married couples and civil partners are treated as one unit: if either owns another home, a purchase by the other is caught.
- Companies: the higher rates apply to purchases of residential property by companies, from the first property. The single rate for certain high-value purchases by companies also rose, to 17 percent, on 31 October 2024.
- Transitional cases: contracts exchanged before 31 October 2024 and completed after may have qualified for the old 3 percent.
Replacing your main home, and refunds
You do not pay the extra 5 percent if the property is replacing your main residence and your previous main residence was sold within 36 months of completing the new purchase. If you buy the new home first and pay the higher rates because you still own the old one, you can claim the surcharge back from HMRC once the old home is sold within that 36-month window. That rule is about main homes; it never helps on a pure investment purchase.
Paying and filing
Your solicitor files the Stamp Duty Land Tax return and pays the tax, usually from completion funds, within the HMRC deadline after completion. The tax is part of the purchase cost and cannot be deducted from rental income, but it is deductible from the gain when you sell; see the capital gains tax guide.
What the surcharge does to yield
On a £200,000 flat let at £1,000 a month, the £11,500 of stamp duty is almost a year's rent. Spread over ten years of ownership it is £1,150 a year, about 0.6 percent off the gross yield of 6 percent. The rental yield calculator includes purchase costs, and the running-cost guide covers what follows: certificates, insurance and licensing. Price the certificates with the certificate cost calculator before you buy, and check whether the street is in a selective licensing area.
Worked example: a £185,000 two-bed terrace
| Slice | Rate | Tax |
|---|---|---|
| First £125,000 | 5% | £6,250 |
| Next £60,000 (£125,001 to £185,000) | 7% | £4,200 |
| Total | £10,450 |
Our calculation. A home mover would pay £1,200.
The same buyer in a limited company pays the same £10,450, because companies pay the higher rates from the first purchase. Add legal fees, a survey, the first gas safety check, an EICR and an EPC if the seller's has lapsed. If the property is below EPC E it cannot be let without an exemption; see the EPC exemptions guide.
Frequently asked questions
How much is stamp duty on a buy-to-let in 2026?
The standard rates plus 5 percent on every slice: 5 percent up to £125,000, 7 percent to £250,000, 10 percent to £925,000, 15 percent to £1.5 million and 17 percent above. A £250,000 buy-to-let costs £15,000.
When did the buy-to-let surcharge go up to 5 percent?
On 31 October 2024, from 3 percentage points to 5 above the standard residential rates. Some contracts exchanged before that date still paid 3 percent.
Is there stamp duty surcharge on a property under £40,000?
No. The higher rates only apply where the purchase price is £40,000 or more.
Do limited companies pay the 5 percent surcharge?
Yes, from the first residential purchase. Companies do not get the main residence exceptions that individuals have.
Can I get the stamp duty surcharge refunded?
Only when you bought a new main home before selling your old one. If the old main home is sold within 36 months of the new purchase, you can claim the extra 5 percent back.
Sources
GOV.UK: Stamp Duty Land Tax residential property rates; increase to the higher rates on additional dwellings, 31 October 2024; HMRC Stamp Duty Land Tax Manual SDLTM09770 (Condition A, the £40,000 rule) and SDLTM09835 (companies). Checked 3 October 2026. See the methodology.