Buy-to-let Stamp Duty Calculator

Stamp duty for buy-to-let homes

This calculator will be useful for those looking to acquire a second property with the intention of letting it out or using it as a second home.
In 2015, the government announced that anybody purchasing a second home that was valued at more than £40,000 would be expected to pay an extra 3% stamp duty. The funds raised from the tax then being used to fund affordable housing for those who may not be able to afford a house purchase.
Our calculator on the left gives you the opportunity to see just how much stamp duty you will be paying should you be looking to acquire an additional property.

Stamp duty rates for buy-to-let property

Stamp Duty for buy-to-let or second properties is calculated at an additional 3% on the standard rates for the value of the property. This means that purchasing a second home does come at a cost. The current rates set out by the government are shown below:

Our stamp duty buy to let calculator will work out the rate due based on your property value. It is perhaps worth noting that if the house you plan to buy costs £400,000, you will pay a 3% stamp duty on the value up to £250,000 and then an 8% stamp duty on the outstanding amount. The calculator will factor this in and give you a rate calculated to the exact value of the property.

Exemptions for buy to let stamp duty

You won’t need to use our stamp duty calculator if the property you plan to purchase is valued at less than £40,000, you are a first-time buyer, or you take advantage of the multiple dwelling relief scheme. This particular scheme allows the purchase of multiple smaller properties in one transaction and avoids stamp duty as a result. You will also be exempt if the property is a caravan, a mobile home, or a houseboat.

Paying your buy to let stamp duty

Once you have calculated the stamp duty charges and proceeded with the purchase, you have 30 days from completion in which to pay it. Your solicitor will normally handle this, allowing you the time to focus on the property itself rather than the paperwork.

Calculating buy to let stamp duty if my main residence is abroad

If you have purchased a property in the UK with the aim of letting it out but reside in a foreign country, you will still be required to pay the second home stamp duty rate.

Calculating buy to let stamp duty on an inherited property I want to rent out

If you have inherited a property, there is no stamp duty to pay unless you purchase an additional home that you then class as your main home. When this is the case, the additional rate of stamp duty may apply to the house you purchase as you will now own more than one property.

If you are looking to acquire a new property for letting out, view our listings for an in-depth portfolio of properties for sale in London. If you have any questions, contact our property experts today!