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In the Autumn Budget, stamp duty for buy-to-let properties and second homes increased by two percentage points.
The table shows the current buy-to-let stamp duty rates in England and Northern Ireland.
| Portion of property price (England and NI) | Buy-to-let stamp duty rate |
|---|---|
| £0-£40,000* | 0% |
| £0-£250,000** | 5% |
| £250,001-£925,000 | 10% |
| £925,001-£1.5 million | 15% |
| Above £1.5 million | 17% |
Rates also apply to second homes and holiday homes.
*If total property price is £40,000 or less. **If total property price is more than £40,000, you'll pay the surcharge on the whole cost of the property.
When you're buying a property you don't intend to live in for most or all of the time - e.g. a buy-to-let property or holiday/second home - you'll have to pay 5% extra in stamp duty.
The main exception to this is people who've never owned a property before and are investing in buy-to-let property as first-time buyers, who instead pay standard home mover rates.
Second home and buy-to-let stamp duty rates are tiered, like residential stamp duty rates and income tax.
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The stamp duty surcharge on additional properties in Wales and Scotland is a higher rate of 4%.
For more information, check out our separate guides on Welsh stamp duty (LTT) and Scottish stamp duty (LBTT).
Use our calculator to find out how much tax you'll pay on a buy-to-let property or second home.
The rules around buy-to-let stamp duty can seem confusing. If you're still not sure whether you're likely to be charged the higher rates, try answering the questions on the chart.
Then, see if the property you're buying fits with any of the exemptions further down the page.
Overseas-based buyers of residential properties in England and Northern Ireland must pay a surcharge of 2% on top of the normal rates.
This applies on top of the 5% buy-to-let surcharge - so overseas residents buying an investment property will need to pay stamp duty at 7% more than the standard rates for home movers.
If you're married or in a civil partnership and either partner already owns a property, you'll have to pay the additional stamp duty regardless of how many properties you yourself own.
If the purchase is not made by an individual (e.g. the buyer is a company rather than a person), the additional stamp duty will apply regardless of how many properties the company owns.
If the total price paid for the property is up to £40,000 you won't need to pay any stamp duty at all.
If you're buying a caravan, mobile home or houseboat, you'll also be exempt from stamp duty, regardless of the purchase price and whether it's going to be your main residence.
If you've never owned a house before and are purchasing a buy-to-let property, you won't have to pay the buy-to-let stamp duty rates. However, you won't qualify for the first-time buyer stamp duty exemption/discount either, as this only applies to those who intend to live in the property.
Instead, first-time buyers purchasing a buy-to-let property will pay the standard home mover stamp duty rates.
If one person in the relationship already owns a property, but then wants to buy as part of a couple, a higher rate of tax will apply to the property being bought together.
People who are married or in a civil partnership are treated as one person for stamp duty purposes.
The only instance where this is not the case is when married couples are living separately and are unlikely to get back together.
If you're buying a property with someone you live with, and one of you already owns a property but the other doesn't, the only way to avoid paying higher stamp duty rates is for the person who doesn't own a property to buy the property on their own.
This means being the only person named on the mortgage and property deeds.
Those purchasing a property jointly will be treated as a single entity for stamp duty - so the same rules apply as for married couples.
If you buy a new home before selling your old one, you will have to pay the higher stamp duty rate.
However, you can claim this back if you sell your original home within 36 months (three years) of buying the new one. See the FAQs for more details.
It's unlikely that additional stamp duty will apply if you have inherited a small share (50% or less) in an additional property, or you hold a financial interest in one as part of a partnership or as a beneficiary of a trust.
However, there are exceptions, so you should declare any financial interests such as these to your solicitor.
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