Landlords Face New Stamp Duty Rates 2025

Stamp duty rates on property purchases in England have changed again, with landlords still having to pay an additional amount for a buy-to-let or holiday home.

The amount to pay varies depending on where the property is located, its worth, and the number of properties a landlord owns.

In England, landlords must pay Stamp Duty Land Tax - shortened to stamp duty - on investment property valued at more than £40,000.

The minimum additional charge is 5 percent of the purchase price on top of the standard stamp duty rate.

This surcharge applies when a landlord buys a house in addition to one already owned. The amount charged depends on the purchase price of the property. Typically, the more it is worth, the more stamp duty is paid.

The rules apply to spouses or civil partners as if they are buying together, even if they are not. If one must pay at the higher rate, so must the other unless separated. The same applies to individuals buying together.

How much stamp duty do landlords pay?

Here are the stamp duty rates for buying investment properties in England from April 1, 2025.

Click here for the rules and fees for higher rates of Land Transaction Tax in Wales

Expats buying investment property pay the above rates plus 2 percent.

HMRC posts this example for calculating stamp duty at the higher rate:

If you own a house that is your main residence, on April 1, 2025, you buy an additional residential property for £300,000. On completion of the purchase, you own more than one property. The SDLT you owe on the purchase will be calculated as follows:

5 percent on the first £125,000 = £6,250
7 percent above £125,000 and up to £250,000 = £8,750
10 percent of the final £50,000 = £5,000

Total SDLT = £20,000

When landlords don't pay additional stamp duty

The higher rate of stamp duty does not apply to every property purchase.

The exclusions include:

• Buying a property as a primary home
• The property is valued at less than £40,000
• Buying a semi-commercial property, which is like a shop with a flat above
• Moveable caravans, houseboats or mobile homes

The additional rates do not apply if a landlord transfers part of a property already owned to a spouse.

For landlords receiving a transfer of part of a property already owned, the additional rate does not apply if the landlord already owns 25 percent or more of the property, the property has been the landlord's primary home for the previous three years or if a lease with 21 years or more left to run is extended.

Some landlord property purchases may qualify for stamp duty relief under certain circumstances - click here for more information.