Stamp Duty for Landlords: A guide

Stamp duty is one of the hurdles landlords have to overcome when building up their property portfolio, so it’s vital to understand its specific implications. Stamp duty for landlords is easy to sort out, but the cost is something you will need to factor in when budgeting for additional properties.

This comprehensive guide to stamp duty for landlords will explain how to calculate Stamp Duty Land Tax (SDLT). It will also highlight the recent stamp duty changes for landlords that could affect purchases in 2025. We’ll also provide some tips for planning property investments to help you understand and effectively manage your stamp duty obligations in 2025.

What is stamp duty?

Stamp Duty Land Tax is a tax that people must pay when buying a property worth over £125,000 in England or Northern Ireland unless specific exemptions apply. The most common exemption applies to first-time buyers who do not need to pay stamp duty for purchases up to £300,000. 

If you’re a landlord, it’s highly likely this isn’t your first purchase, so you won’t be eligible for the first-time buyer discount. This might be your third or even fourth property within your portfolio.

As a landlord, you’ll also be required to pay an additional (minimum) 5% extra charge alongside the regular stamp duty fees. This has recently increased as part of the stamp duty changes for landlords. This surcharge applies if the property being purchased is not replacing your main residence and you already own one or more residential properties worth £40,000 or more.

Stamp Duty for Wales and Scotland

Stamp duty for landlords is different in Wales and Scotland. In Wales, people who buy properties must pay Land Transaction Tax (LTT). This is on residential properties worth more than £180,000 and on non-residential properties worth more than £150,000. If you already own a residential property and are buying another, then you’ll face additional charges for a residential property worth more than £40,000. 

The Scottish government has a system titled Land and Buildings Transaction Tax (LBTT). This applies to residential properties worth more than £145,000 and non-residential properties worth more than £150,000. Scotland also has an Additional Dwelling Supplement, which applies to properties worth more than £40,000. You pay this if you own a residential property and buy another one. For broader tax information, check out our tax advice for landlords guide.

How is stamp duty for landlords calculated? 

The table below shows how stamp duty for landlords is calculated. The landlord’s stamp duty must be paid within two weeks of completion.

Example calculation

Here’s a rough example of stamp duty for landlords. Let’s say you’re a landlord purchasing a buy-to-let property for £400,000 after 1 April 2025. Here’s how the SDLT is calculated with the 5% surcharge:

• £0 – £125,000: 5% of £125,000 = £6,250
• £125,001 – £250,000: 7% of £125,000 = £8,750
• £250,001 – £400,000: 10% of £150,000 = £15,000
• Total SDLT: £6,250 + £8,750 + £15,000 = £30,000

As shown in the table and in the calculations above, the 5% surcharge adds an extra £20,000, highlighting the increase in stamp duty landlord costs for additional properties. The government website has a stamp duty calculator to get an accurate cost of your landlord stamp duty.

Stamp duty changes for landlords

Multiple changes have been made to stamp duty in recent years. The most recent changes regarding stamp duty for landlords occurred in October 2024 and April 2025. 

On the 31st of October 2024, stamp duty for people buying additional properties increased from 3% to 5%. This stamp duty change for landlords significantly impacts the cost of acquiring additional properties. For example, if you’re buying a £300,000 buy-to-let property, the 5% surcharge alone adds £15,000 to your SDLT bill, on top of the standard rates.

On the 1st of April 2025, the threshold was reduced from £250,000 to £125,000. 

Practical tips for planning property investments 

Working your way through the landlord’s stamp duty process can be quite a challenge. The field is often changing with different thresholds being introduced, and the rates going up and down. Announcements can often be made during the Chancellor’s budget, so it’s worth keeping an eye on this.

If any changes are coming up, landlords might wish to try to complete the transaction in time. For example, they might make sure the transaction was complete prior to the changes in April 2025 to save money.

As it is such a significant cost, it’s worth seeking professional advice. Consult a tax advisor or conveyancing solicitor to identify eligible reliefs and ensure compliance with HMRC rules. Use HMRC’s SDLT calculator to estimate landlord stamp duty costs accurately.

Actionable insights for landlords in 2025

Managing stamp duty for landlords needs a proactive approach. By timing your transactions strategically and seeking expert advice, you can optimise your SDLT liability and protect your investment as much as possible. Landlords should also:

• Calculate costs early
• Act before stamp duty changes for landlords
• Seek professional advice
• Review plans
• Carefully monitor government changes

By understanding landlord stamp duty costs, you can make smarter property investment decisions and keep your portfolio profitable in a changing tax landscape.

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