| Band | Rate | Taxable | Tax |
|---|---|---|---|
| £0 – £125,000 | 5% | £125,000 | £6,250 |
| £125,000 – £250,000 | 7% | £125,000 | £8,750 |
Bands updated 2026-04-15. Source: gov.uk
Reviewed by the Mortgage118 editorial team. Surcharge and bands reflect HMRC rules effective 31 October 2024. This calculator provides an estimate only and does not constitute tax advice.
What is buy-to-let stamp duty?
Buy-to-let stamp duty in England and Northern Ireland is Stamp Duty Land Tax on a rental property, with a 5% surcharge added to every band. The surcharge has applied since 31 October 2024. Because it is added to the nil-rate band as well, tax is due from the first pound, not from £125,000.
The surcharge applies when you already own another residential property anywhere in the world, the price is £40,000 or more, and the home you are buying is not replacing your main residence. Limited companies pay it too. If you sell your previous main home within three years, you can reclaim the surcharge from HMRC. Scotland and Wales charge their own taxes, LBTT and LTT, instead of SDLT.
How BTL stamp duty is calculated
The +5% surcharge is added to every standard SDLT band — including the 0% nil-rate band. So on a BTL you pay SDLT from the first pound, not from £125,000.
BTL rates (with +5% surcharge)
When does the surcharge apply?
- You already own another residential property anywhere in the world
- The purchase price is £40,000 or more
- The property you're buying is not replacing your main residence
If you sell your previous main home within 3 years, you can reclaim the surcharge from HMRC.
Frequently asked questions
How much extra stamp duty do I pay on a buy-to-let?
You pay +5% on every band when buying an additional residential property in England or Northern Ireland. For a £250,000 BTL that's £15,000 (vs £2,500 for a standard buyer replacing a main residence).
When did the buy-to-let surcharge rise to 5%?
The additional-property surcharge increased from 3% to 5% on 31 October 2024. Purchases completing from that date pay the higher rate.
Can I avoid the 5% surcharge by buying in a company?
No. Limited companies buying residential BTL also pay the +5% surcharge. Corporate buyers of £500,000+ dwellings may additionally face the 17% flat rate where it applies.
Do I pay the surcharge if I'm replacing my main residence?
No. If you're selling your main home and buying a new one, the surcharge doesn't apply even if you own other properties. Use the residential calculator instead.
Can I reclaim the surcharge if I sell my previous main home later?
Yes — if you sell your previous main residence within 3 years of the new purchase, you can claim the additional-property surcharge back from HMRC.