Landlords and second-home buyers in England pay a 5% Stamp Duty Land Tax (SDLT) additional-rate surcharge on top of standard residential rates when purchasing additional residential property. Raised from 3% to 5% in October 2024, and with Multiple Dwellings Relief abolished from June 2024, the upfront tax cost of acquiring buy-to-let property is higher than at any point in recent memory. This guide explains the current rates, who is caught, what reliefs remain, and how the 14-day payment deadline works.
SDLT applies in England and Northern Ireland only. Wales uses Land Transaction Tax (LTT) with a higher-rates-for-additional-dwellings surcharge (currently 4%). Scotland uses Land and Buildings Transaction Tax (LBTT) with the Additional Dwelling Supplement (ADS) at 6%). This guide covers SDLT only.
Current SDLT rates for additional residential properties (2026)
| Property value band | Standard SDLT rate | +5% surcharge | Effective rate |
|---|---|---|---|
| Up to �125,000 | 0% | +5% | 5% |
| �125,001��250,000 | 2% | +5% | 7% |
| �250,001��925,000 | 5% | +5% | 10% |
| �925,001��1.5m | 10% | +5% | 15% |
| Over �1.5m | 12% | +5% | 17% |
The nil-rate band does not eliminate the surcharge. Even properties below �125,000 attract 5% SDLT when purchased as an additional property. The standard nil-rate threshold reverted to �125,000 on 31 March 2025 after the stamp duty holiday ended.
Who pays the additional-rate surcharge?
- Buy-to-let investors purchasing any residential property they will not occupy as their main residence
- Second-home purchasers already owning a residential property who are not replacing their main home
- Limited companies buying residential property � companies always pay the higher rate, even on a first acquisition by a newly incorporated SPV
- Married couples / civil partners: if either partner owns another residential property not being replaced, the higher rate applies to the full transaction
- Joint purchasers: if any one buyer in a joint acquisition triggers the higher rate, it applies to the full purchase price for all buyers
Main residence replacement: the 3-year reclaim
If you buy a new main residence before your existing main home sells, you pay the surcharge upfront. You can reclaim it once the former main residence sells, provided it does so within 3 years of the purchase. The reclaim is submitted by amending the SDLT return within 12 months of the disposal date of the former main residence.
Multiple Dwellings Relief: abolished from 1 June 2024
Multiple Dwellings Relief, which let buyers of 2+ dwellings in one transaction average the price per dwelling to reduce SDLT, was abolished from 1 June 2024. Portfolio acquisitions completing after that date pay full higher-rate SDLT on the total consideration with no averaging benefit.
Filing and payment: the 14-day deadline
- SDLT must be filed (SDLT1 return) and paid to HMRC within 14 days of completion
- Your conveyancing solicitor or licensed conveyancer typically handles the SDLT return � confirm this is included in their quoted fee
- Late returns attract �100 fixed penalties for up to 3 months, �200 for 3�12 months, plus interest from the 14-day deadline
- Use HMRC's online SDLT calculator for indicative figures; instruct a tax adviser for complex transactions, linked purchases, or corporate structures
This guide is for information only and does not constitute tax or legal advice. Consult a qualified tax adviser for guidance specific to your circumstances.