Buy-to-Let Stamp Duty Rates

From April 2016, the rates of Stamp Duty payable by private landlords increases by 3%. The following table and calculator show the total amount payable. Properties valued at £40,000 or less do not attract the surcharge. Once over this limit, the 3% additional tax applies.

Table of Rates for Buy-to-let Properties

Properties over the £40,000 threshold pay the full 3% on the entire band from £0. See example rates below.

Rate Property Price
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

Source: HMRC

The percentages apply only to the amount between the thresholds. If you purchase a second home and sell your main residence within three years, you can claim the additional tax back.

BTL Stamp Duty Calculator

Enter your property value to calculate the total duty payable.

Property Value

Enter Property Amount £:

Results

Up to £40,000
£40,001 to £125,000
£125,001 to £250,000
£250,001 to £925,000
£925,001 to £1,500,000
Over £1,500,00
Total tax payable:

Check standard rates here.

Example Rates for Second Homes and Buy-to-let Properties

Property Price Tax Payable
£25,000 £0
£70,000 £900
£175,000 £6,250
£250,000 £10,000
£350,000 £18,000
£500,000 £30,000
£750,000 £50,000

Source: StampDutyRates.co.uk Buy to Let Calculator

Another change for buy-to-let investors is that from April 2019, they have to pay any Capital Gains Tax (CGT) within 30 days of selling a property. Currently, any CGT due gets paid at the end of the current tax year.

The CGT timing is in addition to changes made in the Summer 2015 budget where landlords only receive mortgage interest relief at the basic rate of income tax at 20%. This tax change for second and subsequent homes starts from 2017.

You can reduce the income tax payable on these types of investment by claiming for certain allowable expenses. Examples of these include furnishings, repairs, and letting management fees.