Buying a buy-to-let or additional residential property in England or Northern Ireland means paying Stamp Duty Land Tax (SDLT) at the standard rates, plus an additional 5% surcharge on the entire purchase price - a cost that catches out a surprising number of first-time landlords at completion.
Unlike income tax, SDLT is a one-off cost that has to be budgeted for upfront, and it can run into tens of thousands of pounds on higher-value properties. Understanding how the bands and surcharge stack together - and how your situation (first-time buyer, existing homeowner, company purchase) affects what you owe - is essential before making an offer.
This guide breaks down exactly how SDLT is calculated for buy-to-let purchases, walks through worked examples at different price points, and explains the situations where the surcharge does (and doesn't) apply.
The full guide will cover: