Buy-to-let and limited company stamp duty

An individual buying a buy-to-let usually already owns a home, so the purchase pays the higher rates for additional properties: 5% added to every band of the price (GOV.UK, accessed 20 Oct 2026). A first buy-to-let bought by someone who owns no home at all pays the standard rates, but cannot claim first-time buyer relief.

The buy-to-let stamp duty calculator shows the tax at the higher rates for a price entered by the user.

A company buying a residential property pays the higher rates on the whole price, whatever else it owns, because companies cannot have a main residence. The same applies to many purchases by partnerships that include a company. Non-resident companies may also pay the non-resident surcharge on top.

This means a landlord's first purchase through a new company is usually taxed in the same way as a second home bought personally.

A company buying a home for more than £500,000 can be charged a flat 17% of the whole price instead of the banded rates (GOV.UK, accessed 20 Oct 2026). Relief from the flat rate is available where the property is let commercially to unconnected tenants as part of a property rental business, or used in certain other qualifying businesses.

The relief can be withdrawn if the property stops qualifying within three years, for example if a connected person lives there.

Worked example, using example figures, not market data: a landlord who owns a home buys a flat for £200,000. At the higher rates the tax is 5% on the first £125,000 and 7% on the remaining £75,000, which is £6,250 plus £5,250, a total of £11,500.

In the same worked example, using example figures, not market data, the landlord's company buying the flat would also be charged £11,500, because companies pay the higher rates too.

Transferring properties owned personally into a company the landlord controls is treated as a sale at market value, so stamp duty is usually charged on the full value of each property at the higher rates, even if no money is paid. Capital gains tax can also arise on the transfer.

Some property partnerships can transfer into a company with little or no stamp duty, but the conditions are strict. Landlords weighing up a company structure can find more in the guide to limited company buy-to-let mortgages.

Purchases of six or more homes in a single transaction can be taxed at non-residential rates. Mixed-use property, such as a shop with a flat above, is taxed at non-residential rates. A furnished holiday let bought by someone who owns a home is still an additional dwelling for stamp duty purposes.

Landlords buying in Scotland or Wales pay the surcharges in those countries' own taxes instead.