Stamp Duty Land Tax (SDLT)
Tax on property purchases in England and Northern Ireland. Buy-to-let purchases above £40,000 incur a 5% surcharge on top of the standard rates (rising to higher in 2026). Check HMRC for current bands.
At a glance
- BTL surcharge
- 5% above standard rates (2026)
- Threshold
- £40,000+ purchase price
- Regulator
- HMRC
Full guide
Read the complete landlord guide on Stamp Duty Land Tax (SDLT)
Deadlines, fines and step-by-step compliance in our in-depth resource.
Open full guideWhy Stamp Duty Land Tax (SDLT) matters for landlords
SDLT is one of the largest one-off landlord costs and the 2026 surcharge bands shifted the math again. Buyers who do not budget the surcharge end up under-capitalised and over-leveraged — this is a major driver of forced HMO conversions by new landlords trying to rescue the yield post-purchase. Budget SDLT before, not during, solicitor instructions.
Official sources
LetCompliance editorial reviews this entry every quarter against the sources above. Always confirm specific duties with a qualified solicitor or your local council.
Related terms
BTL (Buy-to-Let)
A mortgage product and business model where a property is purchased specifically to rent out. Buy-to-let landlords are subject to Section 24 of the Finance Act 2015, which replaced mortgage interest relief with a 20% tax credit. Stamp duty is higher on a second property.
Capital Gains Tax (CGT)
Tax on the profit from selling a rental property. From April 2024 the CGT annual exempt amount was reduced to £3,000 and residential property gains are taxed at 18% (basic rate) or 24% (higher rate). A CGT return must be filed and tax paid within 60 days of completion.
Section 13 Notice
The only lawful way to raise rent on an assured periodic tenancy. One increase per 12 months with at least one month's notice. Tenant can refer to the First-tier Tribunal which can cap the rent at market rate.
Section 21 Notice
The no-fault eviction notice under Section 21 of the Housing Act 1988. Abolished for new notices from 1 May 2026 under the Renters Rights Act 2025. Landlords must now use Section 8 with a specified ground.
Section 8 Notice
A possession notice served under Section 8 of the Housing Act 1988 citing a specific ground. From 1 May 2026 this is the only route to possession in England. Common grounds: Ground 1 (landlord moving in), Ground 1A (sale), Ground 8 (3 months' arrears).
Selective Licensing
A local authority scheme that requires every private landlord in a designated area to hold a licence, regardless of property type. Operating without a required selective licence carries fines up to £30,000 and can block possession.