Buy-To-Let/Second Home Stamp Duty

Stamp duty for Buy-to-let landlords and people buying second homes.

Since April 2016, those in England and Wales have to pay a 3% surcharge on each stamp duty band.

The stamp duty surcharge lifted each band by 3% compared to buying a main residence. That means that for properties worth between £125,000 and £250,000, where the stamp duty is 2%, buy-to-let landlords will pay 5%.

Up to £125,000

0%

3%

£125 - £250,000

2%

5%

£250 - £925,000

5%

8%

£925 - £1.5m

10%

13%

over £1.5m

12%

15%

These rates will not apply to purchases of caravans, mobile homes or houseboats, or to corporate entities or funds making significant investments in residential property. The government will consult on the policy detail, including on whether an exemption for corporate entities and funds owning more than 15 residential properties is appropriate.

Residential Stamp Duty

Stamp duty thresholds from the 4th December 2014 are as follows;

No tax on the first £125,000 paid

2% on the portion up to £250,000

5% up to £925,000

10% up to £1.5 million

12% on everything above that.


Under the old rules (before 4th December 2014), you would have paid tax at a single rate on the entire property price. Now you will only pay the rate of tax on the part of the property price within each tax band - like income tax.

E.g. Previously if you paid £275,000 for a property, you would pay £8,250 tax, however now you would only pay £3,750 tax.

Useful Information