UK Stamp Duty for Landlords 2026: Rates, Surcharge & Reliefs

Stamp duty landlord 2026: the standard SDLT bands

Stamp Duty Land Tax (SDLT) applies to residential property purchases in England and Northern Ireland. It is charged on the portion of the purchase price falling within each band — the same progressive structure as Income Tax. The rates below apply from 1 April 2025 following the expiry of the temporary threshold increase introduced in September 2022.

The additional dwelling rate applies to landlords purchasing any residential property when they already own one or more dwellings anywhere in the world (subject to the replacement of main residence exception described below). The surcharge applies to the entire purchase price from the first pound — it is not restricted to any band.

SDLT must be filed and paid within 14 days of completion. Late filing attracts automatic penalties; late payment attracts both penalties and interest. Full HMRC guidance is at gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property.

Worked example: SDLT on a £350,000 buy-to-let purchase

A landlord who already owns their own home purchases a £350,000 buy-to-let property. The SDLT calculation using the additional dwelling rates is:

For comparison, if the same buyer were purchasing this property as their only home (no additional dwelling surcharge), the SDLT would be £7,500. The 5% surcharge costs an additional £17,500 on this transaction alone. On a portfolio of four similar properties, the total surcharge exposure across all purchases would be £70,000.

The 5% additional dwelling surcharge: what changed in October 2024

The additional dwelling surcharge was originally introduced at 3% in April 2016 as a measure to reduce buy-to-let competition for first-time buyers. The October 2024 Autumn Budget increased it to 5% with effect from 31 October 2024.

The increase applied immediately from 31 October 2024. Transitional relief applied only to transactions where contracts were exchanged on or before 30 October 2024 and completed before 31 January 2025. All transactions completing from 31 October 2024 — including those already in progress but not yet exchanged — pay the 5% surcharge.

The surcharge applies to:

• Individual buyers who already own a residential property anywhere in the world (with the replacement main residence exception).
• Limited companies purchasing any residential property (no exceptions for first purchase).
• Trustees purchasing residential property where a beneficiary owns another dwelling.

Abolition of Multiple Dwellings Relief

Multiple Dwellings Relief (MDR) was a significant SDLT relief for landlords purchasing two or more dwellings in a single transaction or a series of linked transactions. Under MDR, SDLT was calculated on the average price per dwelling rather than the total transaction value, subject to a minimum effective rate. For a landlord purchasing four properties simultaneously for £1.2 million total (£300,000 average), MDR substantially reduced the SDLT bill compared to paying on the £1.2 million headline figure.

MDR was abolished from 1 June 2024 following the Spring Budget 2024. HMRC's published guidance on MDR abolition confirms transitional rules: contracts exchanged on or before 6 March 2024 retain MDR eligibility provided they complete before 1 June 2024. All other transactions completing from 1 June 2024 cannot claim MDR.

The practical consequence for portfolio landlords acquiring multiple properties in a block purchase is materially higher SDLT from June 2024 onwards. A landlord purchasing a block of six flats for £900,000 total that would previously have attracted MDR now pays SDLT on the full £900,000 at additional dwelling rates — a significantly higher charge.

The 2% non-resident SDLT surcharge

A further 2% non-resident surcharge applies to buyers who are not UK resident when purchasing residential property in England and Northern Ireland. The surcharge was introduced from 1 April 2021 and applies in addition to the standard SDLT rates and the additional dwelling surcharge.

A non-resident landlord purchasing an additional residential property in England therefore pays:

• Standard SDLT residential rates
• Plus 5% additional dwelling surcharge
• Plus 2% non-resident surcharge

Residency for SDLT purposes is determined by a day-count test: if you have been present in the UK for at least 183 days in the 12-month period ending on the date of the transaction, you are treated as UK resident for SDLT. If not, the 2% surcharge applies.

Non-resident landlords who subsequently become UK resident for the 12-month period starting from the transaction date can apply for a refund of the 2% surcharge after that 12-month period has elapsed. Full guidance at gov.uk/guidance/stamp-duty-land-tax-non-uk-residents.

SDLT reliefs and exceptions that still apply to landlords

With MDR gone, the remaining reliefs and exceptions relevant to most landlords are:

Replacement of main residence exception

If you are selling your main residence and purchasing a new one, the additional dwelling surcharge does not apply to the new purchase — even if you own other properties. The exception applies where you are replacing your only or main residence and the previous main residence is sold on the same day or before the new purchase completes. If you buy first and sell second (within three years), you pay the surcharge upfront and claim a refund when the old main residence sells.

Surcharge refund on main residence sale

If you paid the additional dwelling surcharge on a purchase and subsequently sell your previous main residence within three years, you can reclaim the 5% surcharge element. The refund claim must be made within 12 months of the sale of the previous main residence (or 12 months from the SDLT filing date, if later). The claim is made via HMRC's SDLT online service.

Mixed-use property relief

Properties that are partly residential and partly commercial — for example, a flat above a shop — are assessed as mixed-use for SDLT purposes and taxed at the non-residential rates, which are lower than residential rates and do not attract the additional dwelling surcharge. Some landlords have attempted to classify properties as mixed-use; HMRC scrutinises these claims and the commercial element must be genuine and substantial.

Charities relief

Registered charities purchasing property for charitable purposes are exempt from SDLT. This is not relevant to most private landlords but is noted for completeness.

SDLT and buy-to-let incorporation

Landlords considering incorporating their portfolio into a limited company must account for SDLT as one of the major upfront costs. Transferring personally held residential property to a company is a chargeable transaction at market value, attracting SDLT at the additional dwelling rates (5% surcharge applies because the company is purchasing additional dwellings). There is no relief from SDLT for incorporation transfers — unlike CGT, where s162 incorporation relief may defer the charge.

Our guide to incorporation relief for buy-to-let ltd company covers the full financial analysis, including why the SDLT cost alone means incorporation rarely makes sense for portfolios of fewer than four properties.

Scotland and Wales: LBTT and LTT for landlords

SDLT applies only in England and Northern Ireland. Landlords with properties in Scotland or Wales pay different transaction taxes:

• Scotland — Land and Buildings Transaction Tax (LBTT): administered by Revenue Scotland. An Additional Dwelling Supplement (ADS) of 8% applies to additional residential property purchases in Scotland as at April 2026 (increased in 2024). Full rates at revenue.scot.
• Wales — Land Transaction Tax (LTT): administered by the Welsh Revenue Authority. A Higher Rates surcharge of 4% applies to additional residential property purchases in Wales. Full rates at wra.gov.wales.

How SDLT interacts with your MTD tax records

SDLT paid on acquisition is not a deductible revenue expense for Income Tax purposes. It forms part of the base cost of the property for Capital Gains Tax — reducing the taxable gain when you eventually sell. Keeping an accurate record of your acquisition costs — purchase price, SDLT, legal fees, and survey costs — is therefore important for your long-term CGT position.

Within your quarterly MTD submissions, SDLT payments should not appear as a deductible expense. LandlordTaxAi flags large transactions for human categorisation review and maintains a separate record of capital expenditure that does not flow through as a quarterly expense deduction.

For a full overview of your MTD quarterly submission requirements, read our MTD for landlords guide and use our MTD readiness checker to confirm your obligations from April 2026.

Frequently asked questions