Taxes when buying a property

Stamp Duty Land Tax (SDLT)

What is stamp duty?

Stamp Duty (also known as Stamp Duty Land Tax or SDLT) is the tax that must be paid when purchasing property or land over a certain price.

There are varying rates of stamp duty, depending on whether you are a first time buyer, if you already own property and if you are a non-UK resident.

The important thing for property investors to know is that SDLT is charged at the same rate to a limited company as it would be when buying in your own name.

How to pay stamp duty

Property buyers have 14 days from completion to send a SDLT return and make payment to HMRC - if you are using a solicitor or conveyancer, this will usually be handled by them for you.

It’s worth noting that Stamp Duty Land Tax applies in England and Northern Ireland; there are different taxes in Scotland and Wales.

Buy-to-let Stamp Duty rates

When investing in additional properties, there is a 3% surcharge to pay in stamp duty compared to standard home movers, or first time buyers. This applies to both personally owned and limited company purchases.

The table below details the standard Stamp Duty rates for buy-to-let purchases.

Stamp Duty Calculator

Having an accurate estimate of the amount of stamp duty tax that would be due on a property before purchasing is an important step in your investment planning. We’ve built our handy Stamp Duty Calculator to make this quick, easy and accurate.

Stamp Duty Exemptions

Reliefs and exemptions are available to offset SDLT when purchasing multiple properties and more complex purchases. Our team of experts can help you if you need advice on this area of stamp duty liabilities.