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Buy to Let and second home

Stamp Duty Calculator

Buy to Let and second home Stamp Duty calculator - 2022

How much is your Stamp Duty obligation?

Updated for 2022 – Use Surrenden Invest’s Buy to Let Stamp Duty calculator and determine the amount of tax you will pay on the purchase of your next rental property or second home.

Please note that the following calculator is for general interest only and must only be used as a guide. It may not be up-to-date or complete and relates to only certain types of residential properties in England and Northern Ireland. By using the calculator, you understand that the result does not constitute advice. You must seek advice from property lawyers, accountants, or financial advisors on individual circumstances and tax issues.

Calculate Your Stamp Duty

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* These calculations show SDLT liability for a single property where ownership does not exceed one dwelling. For ownership exceeding a single home please use our SDLT calculator for buy to let property and second homes.

** Buy-to-let/second home rates are 3 percentage points above the current SDLT (Stamp Duty Land Tax)

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Stamp Duty to pay
Effective Rate

How to use Surrenden Invest’s Stamp Duty calculator

To determine the amount of tax you will pay on your next property purchase, simply enter the price of the property in the box above and select what type of purchase it will be.

This easy-to-use SDLT calculator will help you establish how much you will pay on your residential real estate purchase, whether you are a first-time buyer, purchasing a single dwelling, or buying an investment property or a second home.

If you have any questions or are unsure of which type of property you are buying, you can use the chatbox on our website or contact a member of the team for more information.

Buy to Let Stamp Duty Thresholds

Use this table as a guide to how much Stamp Duty you will pay when you purchase a rental property or second home in England or Northern Ireland. The rates outlined in the table apply to UK residents only. Non-UK residents pay an additional surcharge (see overseas investor section for more details0.

Property valueBuy to Let and second home Stamp Duty rate
£0 to £40,0000%
Up to £125,0003%
£125,001 to £250,0005%
£250,001 to £925,0008%
£925,001 to £1.5 million13%
Above £1.5 million15%

Stamp Duty Land Tax (SDLT) is paid when a property or land is purchased in England and Northern Ireland. The Stamp Duty obligation varies depending on the value of the property and the type of asset and applies to freehold and leasehold purchases. Buy to Let and second home purchases are subject to a higher rate of Stamp Duty.

If you are an international purchaser, the amount of Stamp Duty payable is different. Click here to find the Stamp Duty rate for overseas buyers. Anchor link to overseas section.

If you’re purchasing a buy to let property in Scotland or Wales, skip to the FAQs.

Purchasers must send a SDLT return to HRMC and pay the amount owed within 14 days of the completion of the property. Typically, the buyer’s solicitor, agent, or conveyancer will file the return and pay the amount due on completion.

If you have not agreed for a professional to file and pay your Stamp Duty obligation on the day of completion, you must file the return and pay the amount owed yourself. If you do not make your payment within 14 days, you may be charged a penalty or interest.

As Stamp Duty is calculated across tiers, investors will pay a different rate on portions of the property’s total value.

Using a calculator like the one at the top of this page will help you determine the amount of tax you will pay on your Buy to Let or second home property purchase. Simply tick the option to select ‘Buy to Let or second home’, and the calculator will determine the amount payable based on the value of the property you are purchasing.

Please note that properties valued under £40,000 are not subject to the additional 3% levy on BTL purchases.

Stamp Duty for overseas investors

From April 2021, overseas investors or non-UK residents must pay a 2% surcharge on residential property purchased in England and Northern Ireland. The rate of Stamp Duty paid by non-resident buyers is in addition to the existing 3% applied on Buy to Let property or second homes.

Property valueOverseas buyer surcharge
Up to £125,0005%
£125,001 to £250,0007%
£250,001 – £925,00010%
£925,001 – £1.5 million15%
Above £1.5 million17%

The government introduced the additional levy for non-UK buyers of residential real estate in England and Northern Ireland and for buyers purchasing through UK resident companies that are controlled by non-UK residents. Unfortunately, there are very few exemptions. However, you can check if you qualify for relief by following this link to government advice.

What is the standard SDLT rate?

The standard rate of Stamp Duty on a residential property in England and Northern Ireland is lower than the tax applied to investment properties. However, as the standard rate typically applies to homeowners when buying their primary residence, the amount payable and the tiers are different. The reduced level of tax is due to the government’s continued efforts to increase homeownership levels across the country.

Property or lease premium or transfer valueSDLT Rate
Up to £125,000

 

0%
The next £125,000 (the portion from £125,001 to £250,000)2%
The next £675,000 (the portion from £250,001 to £925,000)5%
The next £575,000 (the portion from £925,001 to £1.5 million)10%
The remaining amount (the portion above £1.5 million)12%

The government introduced tax relief to help more first-time buyers get onto the property ladder. The SDLT obligation depends on the property’s value and is only available up to £500,000. Again, the percentage payable is determined by the price of the property within each tier.

Property value Rate for first-time buyers
Up to £125,0000%
£125,001 to £250,0000%
£250,001 to £300,0000%
£300,001 to £500,0005%

If you are unsure of the amount of Stamp Duty you will pay, ask your solicitor to calculate what you will owe or use the calculator located at the top of this page.

Why is Stamp Duty on Buy to Let different to standard residential purchases?

With a high demand for living space and rising house prices, many would-be homeowners have been prevented from getting on the coveted property ladder. As a result, the government introduced a wave of changes over the last few years to provide first-time buyers and homeowners with a helping hand to purchase a property.

For Buy to Let investors, one of the most notable changes introduced by the government back in 2016 was a 3% levy on rental property investments in a bid to make the property market fairer for those buying housing purely to have somewhere to live.

First-time buyers are the biggest beneficiaries of exemptions regardless of whether the property is purchased for personal use or as an investment property.

Despite increasing tax paid on investment property, landlords and investors have continued to flock to the UK’s property market, with many taking advantage of the range of housing required across the country to diversify their portfolios.

Those keeping an eye on market trends have been quick to take advantage of the demand for rental properties in some of the UK’s best performing hotspots, including Manchester, Liverpool, Newcastle, Sheffield and Birmingham, where property values are often below the national average.

Purchasing a lower entry-level property will reduce the amount of SDLT payable, helping investors take advantage of the potential for capital gains and reliable rental returns on the market whilst decreasing the upfront cost of their investment.

If you are considering investing in a property and would like more information about how you can diversify your portfolio to include a lower entry-level and fully managed property, contact the Surrenden Invest team.

Buy to Let Stamp Duty FAQs

If you are a first-time investor and you do not own a property in the UK or overseas, you may benefit from the exemptions in place for a first-time buyer. However, if you are a first-time investor who already owns a property in the UK or abroad, you will need to pay a higher tax rate. Speak to your solicitor or a tax advisor about the most efficient to purchase your first rental property.

As a Buy to Let property purchaser, you cannot claim back SDLT. Instead, speak to your solicitor or tax advisor to discuss your circumstances.

During the Covid-19 pandemic, several measures were introduced by the government to encourage activity across the property market, with new thresholds for residential properties in place between July 2020 and 30 September 2021. There is currently no Stamp Duty holiday available in 2022.

For commercial and non-residential land and properties, the SDLT threshold is currently £150,000. Often referred to as ‘mixed use’ property, real estate that falls under this remit includes commercial buildings, agricultural land or forests, property unsuitable to live in, land or real estate that is not part of a dwelling’s garden/grounds, a transaction of six or more residential properties purchased in a single transaction.

Always seek advice from a specialist to determine your obligation and remember that a SDLT return is often required on most transactions under £150,000.

Yes. Overseas buyers pay Stamp Duty on property purchased in England and Northern Ireland. Please refer to the dedicated non-UK resident section on this page for more information.

Yes. If you purchase a property in Scotland, you must pay Land and Buildings Transaction Tax. If the property you are buying is located in Wales, you will need to pay Land Transaction Tax on sales completed or after 1 April 2018. Follow the links for the latest government advice.

If you buy your investment property through a Limited Company, you will pay the higher Stamp Duty applied to Buy to Let or second homes. However, it’s worth noting that some corporate bodies purchasing qualifying residential properties over £500,000 are charged a flat rate of 15%. Seek professional advice to determine the rate payable on any property transaction purchased through a Limited Company.

If you own a property overseas and plan to buy a rental property or second home in the UK, you are eligible to pay the SDLT levy if you reside in the property abroad. The amount you pay is determined on which property is deemed your primary residence (where you live). If you are unsure, please see independent and professional advice.

If you are a parent buying a property for your child and they already own their own home, the higher SDLT rate for second homes will apply. However, if the child does not own a property and the parent does not jointly own the property with their child, the higher rate will not apply. The rate applied will depend on individual circumstances, so please seek independent advice if you are unsure.

There are several Stamp Duty exemptions and reliefs available. However, depending on the circumstances, it can be complicated to navigate. For example, refunds apply if a buyer is replacing their main residence and have not sold their current home on the date of completion. Reliefs are also available on purchasing multiple dwellings in one transaction and on inherited properties. Again, due to the complicated nature of exemptions available, seek advice from a property tax specialist for details on your specific situation.

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