If you're buying a buy-to-let property in England for £250,000, your stamp duty bill is approximately £15,000. That number surprises a lot of first-time investors I speak to — the surcharge alone is five times the standard tax on that purchase.
This guide covers the current SDLT rates, how they work in practice, and the specific numbers you need to plan your acquisition costs.
Current SDLT rates (from April 2025)
The standard residential rates reverted to pre-2022 levels in April 2025, when the nil-rate band dropped from £250,000 back to £125,000.
The rates are tiered — you only pay each rate on the portion within that band, not the whole price. In my experience, this is one of the most commonly misunderstood aspects of stamp duty.
Standard rates: 0% on the first £125,000. 2% on the portion from £125,001 to £250,000. 5% on the portion from £250,001 to £925,000. 10% on the portion from £925,001 to £1,500,000. 12% on anything above £1,500,000.
The additional property surcharge
This is where buy-to-let investors get hit hardest. Anyone purchasing a residential property while already owning another pays a 5% surcharge on top of the standard rates. This applies from the first pound of the purchase price.
The surcharge rose from 3% to 5% in the Autumn Budget 2024. I've run the numbers on several deals since that change, and it makes a material difference to acquisition costs — on a £200,000 property, the surcharge increase alone adds £4,000 to your day-one costs.
Worked example: £250,000 buy-to-let purchase
Standard SDLT: 0% on first £125,000 = £0. 2% on next £125,000 = £2,500. Standard total: £2,500.
Additional property surcharge: 5% on full £250,000 = £12,500.
Total SDLT: £15,000.
That £15,000 needs to come from somewhere. It's cash out of pocket on day one, on top of your deposit, solicitor fees, and survey costs. When I model deals, I always include SDLT as a line item in the total acquisition cost — not as an afterthought.
First-time buyer relief
First-time buyers purchasing a property up to £500,000 pay no SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000. If the property costs more than £500,000, this relief disappears entirely and standard rates apply from £0.
This relief does not apply to buy-to-let purchases or additional properties.
When you pay
SDLT must be paid within 14 days of completion. Your solicitor or conveyancer handles the return and payment as part of the transaction. Late payment incurs automatic penalties and interest.
Use the calculator
Our stamp duty calculator handles the maths for standard purchases and additional property purchases, using the rates published by HMRC.