Stamp Duty Land Tax for property investors: rates, surcharges and reliefs

In England and Northern Ireland the residential rates from 1 April 2025 are 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above £1.5 million. Each rate applies only to the slice of the price in that band. Additional dwellings and company purchases pay more.

For purchases with an effective date on or after 31 October 2024, an additional dwelling pays 5 percentage points more than the standard rate in every band. So the bands are 5%, 7%, 10%, 15% and 17%. On a £400,000 buy-to-let that is £30,000 rather than £10,000, a difference of £20,000.

It applies when you buy a dwelling worth £40,000 or more and, at the end of the day of the purchase, own another dwelling that is not being replaced as your main residence. There are rules about spouses' properties, interests in jointly owned homes and a refund if you sell your old main home within three years. The detail catches people out.

A company buying a dwelling pays the higher rates, with the 5% surcharge on top of the standard bands. If the dwelling costs more than £500,000, a flat 17% of the whole price can apply instead unless a relief is available, such as for a property rental business. If the relief is lost within three years, extra SDLT can become due.

Reliefs include property rental businesses, property development or trading, premises used for a trade open to the public, and employee accommodation, among others. Each has conditions, and relief can be withdrawn if the conditions stop being met in the three years after purchase. The company then pays the higher-rate band charges. We check eligibility before exchange.

No. Multiple dwellings relief was abolished for transactions with an effective date on or after 1 June 2024. It remains for contracts exchanged on or before 6 March 2024, with no later variation. SDLT on several dwellings bought in one deal is now generally based on the total price, which has raised the cost for portfolio buyers.

Yes. If six or more dwellings are bought in a single transaction, the law treats them as non-residential, so the rates are 0% to £150,000, 2% up to £250,000 and 5% above. For larger blocks that can be far cheaper than the residential rates with surcharges. It only works where the dwellings are bought in one transaction, so the facts and the structure of the deal need checking.

A 2% surcharge is added on top of the usual rates if the buyer is not UK resident for SDLT purposes, meaning not present in the UK for at least 183 days in the 12 months before purchase. It has applied since 1 April 2021. Refunds can be claimed if you meet the residence test within 365 days after the purchase.

For freehold non-residential and mixed-use property the rates are 0% up to £150,000, 2% on the next £100,000 and 5% above £250,000. For a new lease, the premium is taxed on those rates and the net present value of the rent is taxed separately at 0% to £150,000, 1% up to £5 million and 2% above. The two are added together.

A mix of residential and non-residential use, for example a shop with a flat above, is taxed at the non-residential rates on the whole price. This is generally cheaper than the residential rates with surcharges. Classification depends on the facts, and some buildings, like a house with a small business use, may not qualify. Check before assuming.

The return and the tax are due within 14 days of completion. Late filing brings penalties, and late payment interest. Your solicitor usually files, but the information about the buyer, surcharges and reliefs should be agreed with your tax adviser beforehand, because the return fixes the position and HMRC has nine months to open an enquiry.

To a company you are connected with, SDLT is charged on market value, even if you pay nothing. To a spouse there is no SDLT if no consideration passes, but if there is a mortgage the debt taken on counts as consideration and can create a charge. Divorce transfers under a court order are exempt. Always check before transferring.

Transfers into and out of partnerships are charged under special rules in Schedule 15 of the Finance Act 2003 and can be based on market value reduced by the partners' continuing shares. The rules are technical, and there is a three-year clawback if capital is taken out. HMRC challenges arrangements designed to avoid the charge.

Scotland charges Land and Buildings Transaction Tax and an Additional Dwelling Supplement of 8% from 5 December 2024, which applies to most residential purchases by companies. Wales charges Land Transaction Tax, with higher residential rates from 11 December 2024. They are administered separately from SDLT, so check the right tax for the property's location.

HMRC has nine months from the filing date of the return to open a formal enquiry, and can later raise a discovery assessment if it finds tax has been underpaid, with longer time limits where the error was careless or deliberate. Penalties depend on behaviour. Keep your valuation evidence and relief calculations, and tell us at once if a letter arrives.