Guide · 6 min read
Stamp duty on a buy-to-let
Why a buy-to-let pays more than a home, how the bill is worked out band by band, and what changes if you buy through a company or live abroad.
In short
- Stamp duty (Stamp Duty Land Tax) is paid on buying a property in England. Wales has its own tax, Land Transaction Tax.
- A buy-to-let pays the higher rates: 5% more than a home buyer in every band.
- On a £250,000 buy-to-let that's £15,000, due in cash when you complete. It's often the biggest cost after the deposit.
- First-time buyer relief never applies to a buy-to-let.
The rates today
Stamp duty is charged in slices, like income tax. Each rate applies only to the part of the price that falls in its band, not to the whole price. A buy-to-let adds 5% to every band, and a buyer who doesn't live in the UK adds another 2% on top.
| Part of the price | Your home | Buy-to-let | Buy-to-let, non-UK buyer |
|---|---|---|---|
| Up to £125,000 | 0% | 5% | 7% |
| £125,001 to £250,000 | 2% | 7% | 9% |
| £250,001 to £925,000 | 5% | 10% | 12% |
| £925,001 to £1,500,000 | 10% | 15% | 17% |
| Above £1,500,000 | 12% | 17% | 19% |
Below £40,000 the higher rates don't apply, so a very cheap property pays the same as a home.
A worked example
Say you already own your home and buy a £250,000 flat to let. The price is cut into its bands and each slice is taxed at the buy-to-let rate:
| Slice of the price | Amount | Rate | Tax |
|---|---|---|---|
| Up to £125,000 | £125,000 | 5% | £6,250 |
| £125,001 to £250,000 | £125,000 | 7% | £8,750 |
| Stamp duty to pay | £15,000 |
How the bill grows with the price:
| Price | Buying your home | Buy-to-let | Extra for a buy-to-let |
|---|---|---|---|
| £150,000 | £500 | £8,000 | £7,500 |
| £250,000 | £2,500 | £15,000 | £12,500 |
| £400,000 | £10,000 | £30,000 | £20,000 |
| £600,000 | £20,000 | £50,000 | £30,000 |
"Buying your home" assumes you're moving, not buying your first home. The extra is always 5% of the price, which is why it matters so much: on a buy-to-let, stamp duty can easily wipe out the first two or three years of profit.
Who pays the higher rates
You pay them if, once you've bought, you'll own more than one home, and you aren't replacing the home you live in. In practice that means:
- Any buy-to-let bought by someone who already owns a home. A home anywhere in the world counts, not just in the UK.
- Any purchase by a company, even its first.
- Someone moving home who hasn't sold the old one yet. They pay the higher rates at first, then can usually claim the extra back if they sell the old home within 3 years.
Married couples and civil partners count as one buyer, so if either of you owns a home, a purchase by the other pays the higher rates too.
Buying through a company
A company always pays the higher rates. So for a landlord who already owns a home, a company pays the same stamp duty as buying in your own name. It only costs more if you would otherwise have paid the ordinary rates.
Above £500,000, a company can be charged a flat 17% of the whole price. A company that will let the property out as a business can claim relief from it and pay the normal higher rates instead. On a £600,000 house that's the difference between £102,000 and £50,000, so make sure your solicitor claims it. Whether to use a company at all is covered in Limited company or your own name?
Mistakes to avoid
- Leaving it out of your sums. Stamp duty comes on top of the deposit and is paid in cash, usually by your solicitor within 14 days of completion. It can't normally be added to the mortgage.
- Using the home buyer's figure. Most online calculators start with the rates for a home. Make sure you pick the additional property option.
- Counting on old reliefs. Multiple Dwellings Relief, which used to cut the bill on buying several homes at once, ended for purchases completing from 1 June 2024.
- Forgetting the date. The rates are the ones in force when you complete, not when your offer is accepted. The rates have changed several times in the last few years, so a purchase that drags on past a change can cost more.
Every figure on this page is worked out by the NestInsights calculator, using the tax rules in force on 10 October 2026. The rules were checked against GOV.UK and the Welsh Revenue Authority on 8 October 2026. This guide explains how the rules work; it isn't financial or tax advice, so check your own case with an accountant or adviser.