Your easy guide to Buy to Let Stamp Duty tax

As a reminder, the temporary Stamp Duty tax relief put in place by the Chancellor to keep the property market buoyant post-lockdown applies until 31st March 2021. It’s straightforward for people buying residential homes – before July 2020, Stamp Duty was paid on any house purchases of £125,000 or over. The recent changes have now made the minimum threshold £500,000, saving lots of buyers a considerable amount of money.

The rules for Buy to Let or buying an additional home differ – the normal Stamp Duty rates apply to these property purchases, plus a surcharge of 3%. You’ll still benefit from a break in Stamp Duty though, as you’ll only pay the 3% surcharge on the first £500,000 of your purchase.

Here’s a simple breakdown of the Stamp Duty you’ll pay if buying a property before 31st March 2021:

House price Standard Rate Buy to Let/second home rate
Up to £500,000 0% 3%
£500,001 – £925,000 5% 8%
£925,001 – £1.5m 10% 13%
Over £1.5 m 12% 15%

Different rates apply in Scotland and Wales so take a look at the Scottish Government’s and the Welsh Government’s websites to find out more.

Anyone buying an additional property will be required to pay the surcharge. You should also be aware that limited companies will need to pay the surcharge as the rules apply to both companies and individuals.

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