Buy to Let stamp Duty Calculator

Buy to Let stamp Duty Calculator (BTL Stamp Duty Calculator – England & NI) on second homes. The Stamp Duty Holiday has had a major impact on the industry. The Government’s decision to remove the 3% stamp duty had been met with initial joy but derision latterly. The Stamp Duty tax break was introduced in July 2020. Effectively the Stamp duty holiday ran from 30th June 2020 to 30th September 2021. The threshold for duty saw an increase from £125,000 to £500,000. The holiday was introduced to re ignite the property market in the midst of the pandemic. The holiday extension meant that no tax was paid on the first £500,000 of house purchases in England and Northern Ireland through to 30th June 2021. Thereafter extended to the 30th September 2021. The savings available were upwards to £15,000.

Buy to Let Stamp Duty Calculator & First Time Buyer

The tax break had hoped to stabilise the market however it proved to have the opposite effect. Leaving those desperate to get on to the property ladder further adrift as prices increased. Prices were also fuelled by the desire for more living space as a result of COVID angst. A buy to let stamp duty calculator is a useful tool for landlords who will need to pay stamp duty on a rental property purchase. The calculator is an invaluable tool that will also confirm additional purchase costs that need to be factored in to yield and rental multiples. Thus helping them to estimate the monthly expenses and the annual profit of their rental properties. Stamp duty should be paid 14 days after completion.

Shared Ownership Properties and Stamp Duty

Typically if you are purchasing a shared ownership property this would be your first home. As a purchaser you will have an option of of paying stamp duty on the full market value as if purchasing outright. The majority of ‘share’ purchases are below the Stamp Duty Tax threshold. Under previous criteria many purchasers elected to defer payment until a further share or shares were purchased. Within the recent stamp duty holiday it, of course, made sense to pay the tax up front. In many cases this worked out to nil. Irrespective it was beneficial to take the option to pay up front and take advantage of the allowance. Shared Ownership purchasers are urged to take advice from their conveyancing solicitor (Stamp Duty payment options).

BTL Stamp Duty Calculator – Limited Company

Company Owned Properties

The 3% surcharge will always be payable on any (residential) property purchased over £40,000. Irrespective of whether the  property is the company’s first purchase or not.


For all mixed use and non-residential company purchases regular non-residential rates apply. That being that there is no 3% surcharge on company purchases of non residential.

Buy-to-Let properties – Why the surcharge?

The chancellor announced in 2015 that an additional 3% stamp duty rate would apply to all purchases of additional property. This was then brought in to effect in April 2016. This was an attempt to slow momentum of the buy-to-let market specifically property investors and those purchasing second homes. The 3% rate is automatically applied to any limited company purchase.

Corporate owned Buy-to-Let and HMO

A flat rate of 15% SDLT is charged against purchases of residential property over £500k by certain corporate entities. This rate is applicable to partnerships, companies and investment schemes. This is an area of SDLT that is fraught with whys and wherefores and, not so much inconsistencies, but a holistic view is very much the order of the day.  It is strongly recommended that professional advice should be sought on specific and particular circumstances. Due to the complexity these are outside the remit of our buy to let stamp duty calculator. However further information can be found here.

Example 1: A five bed property purchased by a company for a director to live in. The company would be required to pay 15% SDLT together with ATED (annual tax on Enveloped Dwellings).

Example 2: If this same five bed property was purchased to house employees (not a director) the 15% rate would not be applicable. However the surcharge of 3% would apply on the typical residential rates.