On this page
Overlay
Do you pay Stamp Duty on buy to let properties?
If you’re looking to purchase a buy to let property, you may be required to pay an additional rate for Stamp Duty Land Tax (SDLT).
The amount you pay will vary depending on the price of your property and how many other properties you have. Read on to find out more about paying Stamp Duty on buy to let properties.
Do you pay Stamp Duty on a second home?
You’re required to pay additional Stamp Duty on a second home if its value exceeds £40,000, whether you are planning to rent it out or use it yourself.
For example, if your second home costs £260,000, you’ll pay 10% Stamp Duty in total.
A second home is defined as any property that you purchase in addition to your main residence. This includes buy to lets, holiday homes and properties purchased as a gift.
Buying a property if you’re not a UK resident
Anyone who is a non-UK resident purchasing a buy to let property in England or Northern Ireland will pay an additional 2% fee on top of the increased buy to let Stamp Duty rates.
For example, if you live overseas and want to purchase a property that has a 15% Stamp Duty charge, you’d pay 17% in total.
The term 'non-UK resident' refers to anyone who has not lived in the UK for at least 183 days. This is during the 12-months prior to purchase.
Are any properties exempt from buy to let surcharges?
There are a few exemptions where you not have to pay Stamp Duty. These include:
- it’s a caravan, motorhome or houseboat
- it’s a freehold property with a value of £40,000 or less
- the property was left to you in a will
- you become the owner through divorce or dissolution of a civil partnership
- you buy a lease for seven years or more. This must be for less than £40,000 with the annual rent below £1,000.
If you think you’ve been incorrectly charged for Stamp Duty, you could claim it back. Just gather all your paperwork and fill out the government’s online SDLT repayment form.