Why it matters
What Stamp Duty Land Tax (SDLT) means for a landlord
Stamp Duty is one of the largest one-off costs of buying a rental, and the higher rates for additional homes rose to 5 percentage points on 31 October 2024. Buyers who budget at the standard rates find the deposit and fees do not add up. Work out the tax at the higher rates before you offer, and include it in the yield.
Worked example
How it plays out
Ellen buys a £300,000 house in Kent to let while keeping her own home. At the higher rates she pays 5% on the first £125,000 (£6,250), 7% on the next £125,000 (£8,750) and 10% on the last £50,000 (£5,000), £20,000 in total, compared with £5,000 for someone buying it as their only home. Her solicitor files the return and pays within 14 days of completion.
Common mistakes
Where landlords go wrong
- 01Budgeting at the standard rates when you already own another home.
- 02Assuming a company purchase avoids the higher rates: companies pay them too, and a 17% rate above £500,000 unless a relief applies.
- 03Forgetting that property you own abroad counts when deciding if a purchase is an additional home.
- 04Leaving Stamp Duty out of the yield calculation.
What to do
A short checklist
- Calculate Stamp Duty at the higher rates before offering.
- Add it to your purchase costs and yield.
- Ask your solicitor to confirm the rates and any reliefs in writing.
Sources
Checked against these sources on 16 September 2026. A guide to the rules in England, not legal advice: for a dispute or a possession claim, speak to a solicitor.
