Stamp Duty on Buy to Let:
The 5% Surcharge Explained
Buy to let purchases attract a 5% additional rate stamp duty surcharge on top of standard SDLT rates (increased from 3% in October 2024). We explain how it works, how much you'll pay, and how PDA Law can handle your buy to let conveyancing.
How Stamp Duty Works on Buy to Let
Stamp Duty Land Tax (SDLT) applies to all property purchases in England above £125,000. For buy to let properties — and any purchase of an additional residential property — a surcharge applies on top of the standard rates.
The surcharge was increased from 3% to 5% for transactions completing on or after 31 October 2024. It applies to the full purchase price — not just the amount above each threshold — making it a significant additional cost for landlords.
In Wales, Land Transaction Tax (LTT) applies instead of SDLT. The higher rate surcharge in Wales is 4% on top of standard LTT rates.
SDLT Rates for Buy to Let (England)
Standard rates + 5% additional rate surcharge (from 31 October 2024)
| Purchase price band | Standard rate | Buy to let rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 – £250,000 | 2% | 7% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
* Rates correct as at June 2026. SDLT rates are subject to change. Always verify current rates with HMRC or your solicitor.
SDLT Examples — Buy to Let vs Standard Purchase
| Purchase price | Standard SDLT | Buy to let SDLT | Surcharge cost |
|---|---|---|---|
| £150,000 | £500 | £8,000 | £7,500 extra |
| £250,000 | £2,500 | £15,000 | £12,500 extra |
| £350,000 | £7,500 | £25,000 | £17,500 extra |
| £500,000 | £15,000 | £40,000 | £25,000 extra |
* Approximate figures for illustration only. Exact SDLT depends on the specific purchase price and applicable rates at the time of completion.
Multiple Dwellings Relief Abolished — June 2024
Multiple Dwellings Relief (MDR) was abolished from 1 June 2024. Previously, MDR allowed buyers purchasing multiple properties in a single transaction to calculate SDLT on the average price per dwelling — which could significantly reduce the overall SDLT bill for portfolio purchases.
This relief is no longer available. Landlords purchasing multiple properties in a single transaction must now pay SDLT on the full purchase price of each property. We advise on SDLT planning for portfolio acquisitions and whether any other reliefs may apply.
Frequently Asked Questions
How much stamp duty do I pay on a buy to let property?
Buy to let properties are subject to the standard SDLT rates plus a 3% additional rate surcharge (increased from 3% to 5% from 31 October 2024 for purchases completing on or after that date). The surcharge applies to the entire purchase price, not just the amount above each threshold. For example, on a £250,000 buy to let purchase, you would pay the standard SDLT plus 5% on the full £250,000.
What is the additional rate stamp duty surcharge?
The additional rate stamp duty surcharge applies to purchases of additional residential properties — including buy to let properties, second homes, and holiday lets. The surcharge was increased from 3% to 5% for transactions completing on or after 31 October 2024. It applies on top of the standard SDLT rates and is charged on the full purchase price.
Do I pay stamp duty on a buy to let if I already own my home?
Yes. If you already own a residential property (including your own home) and purchase a buy to let property, the additional rate surcharge applies. The surcharge applies to any purchase of an additional residential property where the buyer already owns one or more residential properties at the end of the day of completion.
Is there any relief from the stamp duty surcharge for buy to let?
Multiple dwellings relief (MDR) was abolished from 1 June 2024. Previously, MDR allowed buyers purchasing multiple properties in a single transaction to calculate SDLT on the average price per dwelling, which could reduce the overall bill. This relief is no longer available. Other reliefs (such as the non-residential rates for mixed-use properties) may still apply in some cases — we advise on SDLT planning for portfolio purchases.
Do I pay stamp duty on a buy to let in Wales?
In Wales, Land Transaction Tax (LTT) applies instead of SDLT. LTT has its own rates and thresholds, and also includes a higher rate surcharge for additional residential properties. The higher rate in Wales is 4% on top of the standard LTT rates. We advise on both SDLT (England) and LTT (Wales) for landlords purchasing in both jurisdictions.
Can I reclaim stamp duty on a buy to let?
In limited circumstances, SDLT can be reclaimed. If you purchase a new main residence before selling your previous main residence, you pay the additional rate surcharge — but you can reclaim it if you sell your previous main residence within 3 years. This does not apply to buy to let purchases where the buyer already owns their main residence and is purchasing an additional property.
Buy to Let Conveyancing
We handle buy to let conveyancing for landlords across England and Wales. Fixed fees, fast turnaround, SDLT advice included.
01244 757 352Buy to Let ConveyancingKey Changes
- Oct 2024 — Surcharge increased from 3% to 5%
- June 2024 — Multiple Dwellings Relief abolished
- Wales — LTT higher rate is 4% surcharge
Buy to Let Conveyancing Enquiry
Tell us about your buy to let purchase and we'll provide a fixed fee quote for conveyancing.