Buy to Let Stamp Duty Calculator

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).

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. 

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.

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 an additional property is £6,000 (i.e. 3% of £200,000)
4. £6,000 multiplied by 5 is £30,000, which gives an effective SDLT rate of 3%

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.

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.