Vesta Property | Buy To Let Stamp Duty Calculator | Landlord Guide to Stamp Duty

Buy to Let Stamp Duty Calculator

Calculate how much stamp duty you'll need to pay for single or multiple residential investment properties

£

Higher Rate Stamp Duty Bands

UNDER £125K

3%

£125K - £250K

5%

£250K - £925K

8%

£925K - £1.5M

13%

OVER £1.5M

15%

Higher rate stamp duty bands

Stamp Duty Land Tax (SDLT) is a progressive tax paid when purchasing residential property in England and Northern Ireland.

Since April 2016 you must now pay 3% on top of the normal SDLT rates if buying a new residential property means that you’ll own more than one, even if your other properties are outside of the UK. The table shows the SDLT bands including the 3% higher rate.

 

UK Stamp Duty Land Tax (SDLT) FAQ

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.

What is UK Stamp Duty?

Stamp Duty Land Tax (SDLT) is a progressive tax usually paid when purchasing a residential property in England and Northern Ireland (there’s a separate Land & Buildings Transaction Tax that applies in Scotland and Wales).

When is Stamp Duty paid?

SDLT is payable to the HMRC 30 days from the date of completion or you may risk a fine. Your solicitor or legal adviser should take care of this for you and ensure you don't miss the deadline. Some buyers prefer to add on the SDLT amount to their mortgage loan. A mortgage provider will be able to give you more details. 

Who pays Stamp Duty?

SDLT is paid by everyone purchasing a residential or non-residential property in England and Northern Ireland, including overseas buyers, corporate bodies and non-natural persons.

The higher rate for additional properties applies if you already own a property overseas and different SDLT rates and thresholds apply to non-residential property or mixed-use land.

Is there any relief?

Multiple dwellings relief can be applied to “linked transactions”, which is where a buyer purchases more than one property as part of a single deal, arrangement or series of transactions between the same vendor and buyer (or persons connected with them). The SDLT under multiple dwellings relief is based on the average price paid per dwelling (as opposed to the calculating SDLT on the entire purchase price). For example:

  1. You buy 5 houses for £1 million
  2. £1 million divided by 5 gives an average of £200,000
  3. The amount of SDLT you pay on £200,000 at the higher rate for additional properties is £7,500 (i.e. 3% of £125,000 + 5% of £75,000)
  4. £7,500 multiplied by 5 is £37,500, which gives an effective SDLT rate of 3.75%

Alternatively, where six or more dwellings are purchased in a single transaction, then the buyer can choose to treat all the properties collectively as a non-residential transaction so that commercial SDLT rates apply. This can sometimes be more favourable than multiple dwellings relief.

Can I reduce Stamp Duty?

As SDLT is only payable on the land purchase, removable fixtures and fittings, or chattels, such as freestanding wardrobes, sofas, fridges, carpets and curtains, are not subject to SDLT and can, therefore, be subtracted from from the total property price. Everything 'attached' to property such as light switches technically form part of the property and are subject to SDLT.

If a seller is willing to leave certain chattels, you should agree to pay a reasonable amount between yourself and the vendor and subtract it from the agreed purchase price. Remember to seek advice from a tax lawyer or conveyancer. 

Related blog insights

Read more about stamp duty and acquisition costs or learn more from our blog resources

Important Note

All information contained in this website is provided as a guideline only, is based on estimates and assumptions, may not be accurate or complete, and is subject to change. We make no representations or warranties with regards to this information, expressed or otherwise. A buyer who relies on such information does so at their own risk. Buyers are advised to seek independent financial advice and should undertake their own due diligence.

Your capital is at risk. Property values may decline and the property might not be able to be rented at amounts sufficient to cover debt interest costs, operating expenses and liabilities, and might not result in a positive cash flow. Property is an illiquid asset and should not be viewed as a short-term investment.

In no event will we be liable for any loss or damage, including without limitation any loss or damage arising directly or indirectly out of or in connection with the use of this website and the information contained therein.

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