Stamp duty on a buy-to-let property: the 2026 rates landlords pay

Every landlord buying a second property in England faces the same calculation before they can work out their real return: what stamp duty will actually cost. The rates changed twice in quick succession — the surcharge rose in October 2024, then the standard bands reset in April 2025 — and much of what's still online reflects neither change. Below are the rates that apply now, what altered, and where legal room to reduce the bill still exists. First-time buyer relief also narrowed after April 2025, covered separately near the end.

What is stamp duty (SDLT) on a buy-to-let?

Stamp Duty Land Tax (SDLT) is a tax charged by HMRC on the purchase of property or land in England and Northern Ireland. It's paid by the buyer, calculated on the purchase price, and due within 14 days of completion — not exchange of contracts (GOV.UK).

SDLT for a buy-to-let is charged on a slice basis, so each rate applies only to the portion of the price within that band, not the whole amount. And because a buy-to-let counts as an additional property rather than a main home, a surcharge is added on top of every band — the single biggest difference between what a first-time buyer pays and what a landlord pays on an identical property.

Scotland and Wales run separate systems — Land and Buildings Transaction Tax and Land Transaction Tax respectively — with their own rates. This guide covers England and Northern Ireland only.

Buy-to-let stamp duty rates in 2026

From 1 April 2025, the standard residential SDLT bands are:

A landlord buying an additional residential property pays a 5 percentage point surcharge on top of every one of those bands, taking the effective rates to 5%, 7%, 10%, 15% and 17% (GOV.UK). The surcharge applies to any additional property costing £40,000 or more — there's no partial exemption below that threshold, it simply doesn't apply.

Worked example. A landlord buys a £350,000 buy-to-let, already owning their main home:

• £0–£125,000 at 5% = £6,250
• £125,001–£250,000 at 7% = £8,750
• £250,001–£350,000 at 10% = £10,000
• Total SDLT: £25,000

The same property bought by someone with no other property — a standard purchaser, not a first-time buyer — would cost £7,500. The £17,500 difference is entirely the surcharge (5% of £350,000).

That surcharge isn't new, but its size is. It rose from 3% to 5% on 31 October 2024, in the same Autumn Budget that raised the corporate flat rate on high-value dwellings from 15% to 17%. Anything you read that still quotes a 3% surcharge is describing a rate that no longer exists.

Buy-to-let through a limited company

Many London landlords buy through a limited company, usually for income tax reasons rather than SDLT. For most company purchases, the same rates apply as for an individual — standard bands plus the 5% surcharge. A company gets no lower rate for being a company, and none of the main-residence exemptions available to individuals apply to it either.

It gets more expensive above £500,000. A company (or certain partnerships and collective investment schemes) buying a single dwelling over that price can be charged a flat 17% rate on the whole price instead of the tiered bands — a rule aimed at stopping high-value homes being "enveloped" in companies to avoid tax on future transfers (GOV.UK), raised from 15% on 31 October 2024.

Relief from that rate matters more to most landlords than the rate itself. A company buying to let to unconnected tenants can claim relief and pay standard bands plus the 5% surcharge instead — on a £600,000 purchase, £50,000 rather than £102,000. The relief must be claimed in the SDLT return, isn't automatic, and can be withdrawn if the property leaves the rental business within three years. Confirm eligibility with a solicitor before completion.

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How to legally reduce stamp duty on a buy-to-let

Multiple Dwellings Relief — the mechanism most landlords used to reduce SDLT on portfolio purchases — was abolished for transactions completing on or after 1 June 2024 (HMRC SDLTM29901). Older advice recommending it, including guidance still circulating online, describes a relief that no longer exists.

Two mechanisms remain. Buying six or more dwellings in a single transaction is treated as non-residential for SDLT purposes under section 116(7) of the Finance Act 2003 — unaffected by the MDR abolition, and still the main legitimate route for portfolio buyers to reach lower non-residential rates. It only applies to a genuine single transaction; linking separate purchases to hit the number doesn't qualify. Below £40,000, the surcharge doesn't apply at all, though this rarely matters in London.

Renegotiating price with a seller isn't a stamp duty mechanism — it's negotiation. SDLT reclaim agents promising to recover the surcharge on a standard purchase are worth treating with caution: HMRC's approach to speculative claims is "process now, review later," and several cases have ended in clawback and penalties for the buyer, not the agent.

Can you claim back the stamp duty surcharge?

Sometimes — but not in the scenario most landlords have in mind. The refund exists for people replacing their main residence: buy a new main home before selling the old one, pay the surcharge on completion, then reclaim it once the previous property sells, provided that happens within 36 months (GOV.UK). The claim has its own deadline on top of that: it must reach HMRC within 12 months of selling the previous home, or within 12 months of the filing date of the SDLT return on the new one, whichever is later.

That doesn't help a landlord buying a straightforward additional investment property while keeping their existing home. The surcharge is due and stays due — nothing is being replaced, so there's no reclaim route. If an adviser suggests otherwise for a standard buy-to-let purchase, ask which specific HMRC relief they're relying on before paying them.

Stamp duty on a second home vs your main residence

The distinction that decides whether the surcharge applies isn't "is this a rental property" — it's "do you already own another dwelling and are you keeping it." A landlord who owns their main home outright and buys a buy-to-let pays the surcharge, full stop, regardless of what happens to the new property afterwards. Someone selling their only home and buying a new one to live in doesn't pay it at all, because they're not increasing the number of properties they own.

Where landlords get caught out is timing: buying the new main residence before completing the sale of the old one triggers the surcharge upfront, refundable later. Buying and selling on the same day, or selling first, avoids it altogether. If you're planning a move alongside a portfolio purchase, sequence the transactions with your solicitor before exchange, not after.

First-time buyer stamp duty relief in 2026

For buyers who've never owned a residential property anywhere in the world — including overseas — first-time buyer relief still applies, but the thresholds are considerably lower than they were before April 2025.

From 1 April 2025: 0% on the first £300,000, 5% on the portion from £300,001 to £500,000. If the purchase price is over £500,000, relief is lost entirely and standard rates apply to the whole amount (GOV.UK). Every buyer named on the purchase must qualify as a first-time buyer, or the relief doesn't apply to any of them.

Before 1 April 2025 (no longer available): 0% on the first £425,000, 5% on the portion from £425,001 to £625,000.

The practical effect: a first-time buyer purchasing a £425,000 home paid nothing under the old rules. Under the current rules, the same purchase costs £6,250 — 5% on the £125,000 above the new £300,000 threshold. That's the change behind most of the "why did my stamp duty calculation change" queries we still see.

Stamp duty scenarios compared

Neither route is universally cheaper. It depends on portfolio size, whether the purchase is a single property or a block, and how the property will be used from completion.

Frequently Asked Questions

Do first-time buyers pay stamp duty in 2026?

Only above £300,000. There's no SDLT on the first £300,000 of the purchase price, and 5% on the portion from £300,001 to £500,000. Above £500,000, first-time buyer relief doesn't apply at all, and standard rates are charged on the full price (GOV.UK).

How much stamp duty do landlords pay on a buy-to-let?

Standard residential rates plus a 5% surcharge on every band, applying to additional properties costing £40,000 or more. On a £350,000 purchase, that's £25,000 in total — £7,500 in standard SDLT plus £17,500 in surcharge.

Do you pay extra stamp duty on a buy-to-let bought through a limited company?

The same 5% surcharge applies as for an individual buyer. Above £500,000, a company can additionally face a 17% flat rate unless it claims relief for a genuine property rental business — in which case the standard rates and surcharge apply instead, which is usually far cheaper.

Can you claim back the stamp duty surcharge?

Only if you're replacing your main residence and sell your previous main home within 36 months of buying the new one. A standard buy-to-let purchase, where you keep your existing home, doesn't qualify for a refund.

What changed after April 2025?

The standard nil-rate threshold reverted from a temporary £250,000 to £125,000. First-time buyer relief dropped from a £425,000/£625,000 structure to £300,000/£500,000. Separately, from 31 October 2024, the additional-property surcharge rose from 3% to 5%, and the corporate flat rate on high-value dwellings rose from 15% to 17%.

What this means for your next purchase

For most London landlords buying a single additional property, the calculation is now straightforward: standard bands plus a 5% surcharge, with no Multiple Dwellings Relief to soften it. The exceptions worth knowing are the six-or-more-dwellings rule for portfolio purchases, and the rental-business relief that keeps a limited company off the 17% flat rate above £500,000. Beyond that, the honest answer is that stamp duty is a fixed cost of acquisition — the return on it is decided afterwards, by how well the property performs.

See what your property could realistically earn before you complete, and if you're weighing a fixed-income model against variable buy-to-let returns, compare our guaranteed rent and mid-term rental options against a standard tenancy first. Once you're letting the property, our guide to UK short-let tax covers what comes after stamp duty.

Disclaimer: This blog is for informational purposes only and should not be taken as financial or investment advice. Readers should seek independent professional advice where required.