Stamp Duty Land Tax

You pay land tax when you buy a property in the UK. This is called Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land and Buildings Transaction Tax (LBTT) in Scotland, and Land Transaction Tax (LTT) in Wales.

As a landlord, you'll usually need to pay a land tax on any property you purchase to let out. The rate of tax you pay depends on:

  • property price
  • where the property is: England and Northern Ireland have the same SDLT rates, while Scotland's LBTT and Wales' LTT have different rates and thresholds
  • your circumstances: for example, purchases by registered social landlords may qualify for reliefs or exemptions, purchases by a company have an additional surcharge in all three land tax regimes.

Land taxes for landlords explained

Land tax is calculated in bands, with different rates applied to each portion of the price.

If you're buying an additional property or a buy to let, you will pay a higher rate, as different land tax rates apply.

England and Northern Ireland

If the property is in England and Northern Ireland, you can find the most up to date SDLT rates below:

The example below shows how SDLT can be calculated for a buy to let or additional residential property in England and Northern Ireland.

Property value: £350,000

  • 5% on the first £125,000 = £6,250
  • 7% on the next £125,000 = £8,750
  • 10% on the remaining £100,000 = £10,000

Total stamp duty = £25,000

Scotland or Wales

If the property is in Scotland or Wales, different taxes apply each with their own rates and rules, and these too can be complex.

Important:

Land tax rules for buy to let, additional properties and company purchases can be complex and depend on individual circumstances. You may want to seek advice from a qualified tax specialist or your intermediary before proceeding.



The additional tax rates quoted may change. Make sure to check for updates with the corresponding tax authority for your property location using the links above.

Land tax calculators

England and Northern Ireland

As a landlord in England and Northern Ireland there is an additional 5% surcharge on top of the SDLT.

SDLT Calculator

Scotland

As a landlord in Scotland there is an additional 6% charge on top of the LBTT.

LBTT Calculator

Wales

As a landlord in Wales, higher LTT rates apply, starting from 5% and increasing by band.

LTT Calculator

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