Stamp Duty Land Tax (SDLT) is applicable when purchasing a freehold, leasehold or shared ownership residential property in England. Since 3 December 2014, buy-to-let property and additional residential property purchases have attracted a Stamp Duty Land Tax (‘SDLT’) surcharge of 3% for acquisitions above £40,000.
If you are just moving to a new house whilst selling your old house, then this surcharge does not apply and SDLT is calculated in accordance with the rules applicable to main residential property purchases – see our SDLT calculator for main residential properties.
Stamp Duty Land Tax Calculator (buy-to-let or additional residential properties)
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Stamp Duty Land Tax Rates
| Rate | Charge band |
|---|---|
| 0% | Up to £40,000 |
| 3% | Over £40,000 and under £125,000 |
| 5% | Over £125,000 and under £250,000 |
| 8% | Over £250,000 and under £925,000 |
| 13% | Over £925,000 and under £1,500,000 |
| 15% | Over £1,500,000 |
Stamp duty rates are only applied to the relevant portion of the property purchase value. For instance, a buy-to-let or additional property purchase at £300,000 would result in stamp duty of £14,000 calculated as: £0 on the first £40,000, £3,750 on the next £85,000 (3% * £85,000), £6,250 on the next £125,000 (5% * £125,000) and £4,000 on the next £50,000 (8% * £50,000).
Example Charges vs. Main Residential Property Purchases
| Property price | BTL or additional property purchase | Purchase of main residence | Surplus |
|---|---|---|---|
| £40,000 | £0 | £0 | £0 |
| £125,000 | £2,550 | £0 | £2,550 |
| £200,000 | £7,500 | £1,500 | £6,000 |
| £300,000 | £14,000 | £5,000 | £9,000 |
| £500,000 | £30,000 | £15,000 | £15,000 |
| £750,000 | £50,000 | £27,500 | £22,500 |
| £1,000,000 | £73,750 | £43,750 | £30,000 |
