Landlord Stamp Duty UK 2026 — SDLT Surcharge on Buy-to-Let

Overview

SDLT rates for additional dwellings (landlords) from 31 October 2024

• £0–£250,000: 5% (standard 0% + 5% surcharge)
• £250,001–£925,000: 10% (standard 5% + 5% surcharge)
• £925,001–£1,500,000: 15% (standard 10% + 5% surcharge)
• Over £1,500,000: 17% (standard 12% + 5% surcharge)
• The surcharge applies to: buy-to-let purchases, second homes, holiday lets, and any residential purchase where the buyer already owns a residential property
• The surcharge does not apply to: first residential property purchases, purchases by certain public bodies, certain large investor purchases (subject to multiple dwellings relief rules)

When the 5% surcharge applies

• The surcharge applies if, at the end of the day of completion, you own (or part-own) another residential property anywhere in the world
• Spouses and civil partners: if your spouse or civil partner owns a residential property, the surcharge typically applies to your purchase — even if you are buying in your sole name
• Company purchases: corporate buyers pay the 15% flat rate SDLT for properties above £500,000 (under the Annual Tax on Enveloped Dwellings envelope rules) — the standard surcharge table does not apply in the same way for higher-value company purchases
• Mixed-use properties (e.g. flat above a shop): SDLT is charged at commercial rates (up to 5%), which may be lower than the residential surcharge rate depending on the purchase price
• New build purchases: the surcharge applies to new builds in the same way as resale properties — developers' SDLT incentives (stamp duty paid promotions) are typically only available to first-time buyers

Buying in a limited company (SPV)

• An SPV (limited company) buying residential property pays the surcharge rates — the same additional 5% applies
• Properties purchased by a company for more than £500,000 may also be subject to the Annual Tax on Enveloped Dwellings (ATED) — an annual charge on high-value residential property held in a corporate envelope
• ATED 2025/26 rates: £500,001–£1m = £4,400/year; £1m–£2m = £9,000/year; £2m–£5m = £30,550/year; above £5m: higher rates apply
• ATED relief: residential property used for a qualifying rental business is typically exempt from ATED — but the relief must be claimed annually via an ATED return
• Take specialist tax advice before deciding whether to purchase in a company — the SDLT cost is the same, but corporation tax, mortgage interest deductibility, and extraction tax differ significantly from personal ownership

SDLT refund — replacing your main residence

• If you pay the surcharge because you own another property, but you sell your previous main residence within 3 years of the new purchase, you can claim a refund of the surcharge
• The refund is claimed via HMRC's SDLT amendment process within 12 months of the sale of the previous main residence (or within 12 months of the 3-year anniversary of the new purchase if later)
• This refund provision is designed for people who move home while their old home has not yet sold — it does not apply to landlords who buy BTL without the intention of replacing their main residence
• Claim the refund via HMRC's online SDLT refund claim — provide the SDLT reference for the original transaction and evidence of the sale of the previous main residence