Buy-to-let stamp duty calculator
The buy-to-let stamp duty rules mean that anyone buying an additional property, including buy-to-let landlords and those buying second homes and holiday homes, will have to pay an extra 3% in stamp duty. Use our calculator to work out how much you'll pay.
Buy-to-let and second home stamp duty rates
Second home and buy-to-let stamp duty rates are tiered, just like residential stamp duty rates and income tax. Each tier, or portion of the property price, is now subject to an extra 3% stamp duty on top of the usual rate paid by those buying a home they are intending to live in.
You can check out the stamp duty rates in the table below, and calculate how much you'll now have to pay using our buy-to-let stamp duty calculator, top right.
- These rates only apply in England and Northern Ireland. If you're buying in Wales or Scotland, check out our guides on Welsh stamp duty (LTT) and Scottish stamp duty (LBTT)
|Buy-to-let stamp duty rates|
|Portion of property price||Stamp duty rate|
Take a look at this example to see how it works:
- Property price: £275,000
- Portion 1: £0 - £125,000 - 3% tax (£3,750)
- Portion 2: £125,000.01 - £250,000 - 5% tax (£6,250)
- Portion 3: £250,000.01 - £275,000 - 8% tax (£2,000)
- Total paid: £287,000 (£12,000 tax)
Buy-to-let stamp duty exemptions
If you're married or in a civil partnership and either partner already owns a property, you'll have to pay the additional stamp duty regardless of how many properties you yourself own.
If the purchase is not made by an individual (eg the buyer is a company rather than a person), the additional stamp duty will apply regardless of how many properties the company owns.
So what properties are excluded from buy-to-let stamp duty?
If the total price paid for the property is under £40,000 you won't need to pay any stamp duty at all.
If you're buying a caravan, mobile home or houseboat, you'll also be exempt from stamp duty, regardless of the purchase price and whether it's going to be your main residence.
If you exchanged contracts on or before 26 November 2015, and complete your purchase on or after 1 April 2016, you will be exempt from paying the higher rate of stamp duty.
Being a first-time buyer
If you've never owned a house before, but decide to purchase a buy-to-let property, you won't have to pay the buy-to-let stamp duty rates. However, you won't qualify for the first-time buyer stamp duty exemption either - as this only applies to those who intend to live in the property.
So, instead, first-time buyers purchasing a buy-to-let property will pay the standard home movers stamp duty rates.
If you buy a new home before selling your old one, you will have to pay the higher stamp duty rate.
However, you can claim this back if you sell your original home within 36 months (three years) of buying the new one. The claim must be made within three months of the sale.
Holding financial interest in a property
It's unlikely that additional stamp duty will apply if you have inherited a small share (50% or less) in an additional property, or you hold a financial interest in one as part of a partnership or as a beneficiary of a trust.
However, there are exceptions, so you should declare any financial interests such as these to your solicitor.
- For help working out whether you'll have to pay higher stamp duty rates, Which? members can call the Which? Money Helpline. If you're not yet a member, try Which? Money for £1 for two months for full access to the helpline
- Finding a buy-to-let mortgage can be a confusing process, but you can get impartial advice on the right product for you by contacting Which? Mortgage Advisers on 0800 197 8461.
Correct as of date of publication.