Buy to Let SDLT Rates 2025/26 (England)
The Autumn Budget 2024 (31 October 2024) increased the higher rates for additional dwellings (HRAD) surcharge from 3% to 5%. This applies to all buy-to-let purchases, second homes and any residential property purchase where the buyer already owns a dwelling at completion.
Additional Dwelling SDLT Rate Table (from 31 Oct 2024)
| Price Band | SDLT Rate (Additional Dwelling) | Standard Rate (Main Residence) |
|---|
| £0 – £250,000 | 5% | 0%–2% |
| £250,001 – £925,000 | 10% | 5% |
| £925,001 – £1,500,000 | 15% | 10% |
| Above £1,500,000 | 17% | 12% |
Note: From 1 April 2025, the nil-rate band for standard residential SDLT reduces from £250,000 back to £125,000 (end of temporary relief). The additional dwellings rates above are not affected by this change.
Frequently Asked Questions — Buy to Let SDLT
What is the SDLT surcharge for buy-to-let in 2025/26?
From 31 October 2024, the higher rates for additional dwellings surcharge increased from 3% to 5%. This applies to buy-to-let purchases, second homes, and any purchase where you already own another dwelling.
What are the buy-to-let SDLT rates from October 2024?
On the first £250,000: 5%. £250,001–£925,000: 10%. £925,001–£1.5m: 15%. Above £1.5m: 17%.
Do I pay the surcharge if I'm replacing my main residence?
No — if you sell your previous main residence within 3 years, you can reclaim the surcharge. If you've sold before buying, the surcharge doesn't apply at completion.
Can I claim a refund if I paid the 5% surcharge by mistake?
Yes — apply for a refund within 12 months of the sale of your previous main residence. Apply to HMRC directly.
Does the surcharge apply in Scotland and Wales?
No — Scotland uses LBTT with a separate Additional Dwelling Supplement. Wales uses LTT. Different rates apply in each nation.
Is there a nil-rate band for buy-to-let?
No — under the higher rates surcharge, SDLT is payable from the first pound. There is no nil-rate band for additional dwellings.
Do limited companies pay the surcharge?
Yes — companies purchasing residential property pay the higher rates surcharge regardless of how many properties they already own.
What about the 15% flat rate for companies?
A 15% flat SDLT rate applies to companies buying a single residential property worth over £500,000. This is separate from the standard surcharge calculation.
Is SDLT deductible against rental income?
No — SDLT is not deductible against rental income. It forms part of the acquisition cost and may reduce CGT on eventual disposal.
When must SDLT be paid?
SDLT must be paid and the return filed within 14 days of completion. Your solicitor or conveyancer handles this.
What counts as an 'additional dwelling'?
Any residential property you own at the end of the day of completion — including buy-to-let, holiday homes, inherited properties, and jointly owned properties.
Are mixed-use properties subject to the surcharge?
Mixed-use properties are usually subject to non-residential SDLT rates, which are lower and do not carry the surcharge. This depends on the property's actual use at the time of purchase.