Skip to content

Higher stamp duty rates for buy-to-let property

Stamp duty land tax (SDLT) on additional properties such as buy-to-let investments and second homes will be 3 percentage points higher than current SDLT from April 2016.

Corporate properties and properties in Scotland (which are subject to land and building transaction tax) are not affected by the new rules. The new rates will not apply to caravans, mobile homes or house boats and properties below £40,000. The government will consult on the exact policy details including a possible exemption for corporates and funds that own more than 15 residential properties.

SDLT rates for additional properties

Portion of property price Current SDLT rate SDLT from April 2016 rate
Up to £40,000 Zero Zero
£40,001 – £125,000 Zero 3%
£125,001 – £250,000 2% 5%
£250,001 – £925,000 5% 8%
£925,001 – £1.5 million 10% 13%
Above £1.5 million 12% 15%

In his Autumn Statement speech George Osborne said: “People buying a home to let should not be squeezing out families who can’t afford a home to buy.”

Richard Lambert, CEO at the National Landlords Association, said: “The Chancellor’s political intention is crystal clear; he wants to choke off future investment in private properties to rent. The exemption for corporate investment makes this effectively an attack on the small private landlords.”

Talk to us about how changes to stamp duty could affect you.