A rental property does not have one universal tax rate
The calculator starts on additional-property rates because that is a common situation for an individual landlord who already owns a home. Change to standard rates if you do not meet the higher-rate conditions. The words “buy to let” on a mortgage offer do not settle the SDLT position.
A £300,000 purchase at additional-property rates has an estimated £20,000 SDLT bill for a UK-resident individual. At ordinary rates the estimate is £5,000. That difference is an acquisition cost, so account for it before comparing rental returns or deciding how much cash is available for repairs.
Buying your first-ever property to rent out
If you have never owned a home and buy a rental property, higher rates do not automatically apply simply because it will be let. However, first-time buyer relief requires an intended main residence, so a pure investment purchase normally does not meet that condition.
The practical starting point can therefore be standard residential SDLT rather than either first-time buyer relief or additional-property rates. Confirm all purchasers’ circumstances, including interests attributed through a spouse or other arrangements, before choosing.
Buying through a limited company
Company and individual purchases should not be compared using a calculator that assumes the same tax rules. Corporate purchases can be subject to special rates and relief conditions, and the result may depend on how the dwelling will be used.
This tool does not test corporate reliefs, partnerships or trusts. Ask the adviser handling the transaction for an acquisition-tax figure specific to the proposed ownership structure. Do not select first-time buyer simply because a company has never purchased a property before.
Keep purchase tax separate from rental costs
The total shown here combines purchase price and SDLT only. It does not include lender fees, legal costs, survey fees, refurbishment, insurance, letting costs or taxes on rental income and a future sale. Add your own quotes for those items in a separate cash budget.
A non-UK resident individual may also face the 2 percentage point SDLT surcharge. For property in Scotland or Wales, use the regional calculator. If the property includes a shop or other commercial element, read the mixed-use guide rather than assuming residential rates.
RESEARCH & CORRECTIONS
Sources and review
Researched and maintained by StampDutyCal. Checked on against the official sources below. This is our own research, not an independent professional tax review. We update the website when rules change.