Why it matters
What Stamp Duty Surcharge (Additional Property) means for a landlord
The additional-property SDLT surcharge is one of the biggest up-front costs of buying a rental in England and Northern Ireland. From 31 October 2024 it rose from 3% to 5%, charged on top of the standard Stamp Duty rates when you buy a property in addition to your main home, so on a £250,000 buy-to-let it adds £12,500 before the base SDLT. It applies to individuals and to limited companies (which also face a 17% flat rate on properties over £500,000). Modelling the surcharge is essential when you run the numbers on a purchase, because it materially changes the yield.
Worked example
How it plays out
Tom and Jess buy a new home before selling their old one, so they pay the higher rates on the purchase. They sell the old home 14 months later, well within three years, and claim the surcharge back from HMRC.
Common mistakes
Where landlords go wrong
- 01Not claiming the refund after selling your previous main home.
- 02Assuming a purchase through a company avoids the surcharge.
- 03Forgetting that property you own anywhere in the world counts.
What to do
A short checklist
- Check whether you own any other residential property, in the UK or abroad.
- Budget at the higher rates for any additional home.
- Diary the refund claim if you are replacing your main home.
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.
