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Stamp Duty Buy-to-Let Landlords Need to Pay in 2026

Landlords
Posted in   Jan 13 , 2026
Stamp Duty Buy-to-Let Landlords

Stamp duty in the UK remains the biggest upfront cost property investors have to pay. If you are a buy-to-let landlord, the rules are stricter than they were a few years ago, with higher rates and lower thresholds now firmly in place. It is important to understand how stamp duty applies before you buy for better budgeting, yields, and long-term planning.

This blog explains how stamp duty works for buy-to-let landlords, what has changed, and what to watch out for.

What Is Stamp Duty for Buy-to-Let Landlords?

Stamp Duty Land Tax (SDLT) is a tax paid when buying property in England and Northern Ireland. If you are purchasing a buy-to-let property, you are classed as buying an additional residential property, even if you do not already own your main home.

Because of this, buy-to-let landlords pay higher SDLT rates than owner-occupiers. These higher rates apply whether the property is intended for long-term letting, short-term rental, or investment purposes.

Stamp Duty Buy-to-Let Landlords

From late 2024 onwards, the government increased the surcharge on additional properties. These rates continue to apply in 2026.

Buy-to-let landlords pay an extra 5% surcharge on top of standard residential SDLT rates.

Current SDLT rates for buy-to-let landlords (England)

  • £0 - £125,000 is 5%

  • £125,001 - £250,000 is 7%

  • £250,001 - £925,000 is 10%

  • £925,001 - £1.5 million is 15%

  • Over £1.5 million is 17%

This means stamp duty is payable from the first pound of the purchase price, unlike main-residence buyers who benefit from lower or zero rates at the bottom end.

How the Lower Thresholds Affect Buy-to-Let Purchases

From 1 April 2025, the temporary higher stamp duty thresholds introduced during the pandemic ended. The nil-rate threshold reverted to £125,000 and remains the same in 2026.

For buy-to-let landlords, this change has a real impact. Many properties that previously attracted lower tax bills now incur SDLT across a larger portion of the purchase price, increasing upfront costs and affecting return calculations.

Stamp Duty Example for Buy-to-Let Landlords

To understand the impact, consider a buy-to-let purchase at £300,000:

  • 5% on the first £125,000

  • 7% on £125,001-£250,000

  • 10% on £50,000 (£250,001-£300,000)

This results in a stamp duty bill of £20,000, payable within 14 days of completion.

Do Non-UK Resident Landlords Pay More Stamp Duty?

Yes! Buy-to-let landlords who are non-UK residents usually pay an additional 2% surcharge on top of the higher rates for additional properties.

Some overseas landlords may face total SDLT rates of up to 19% on higher-value purchases. Residency status is assessed using HMRC’s statutory residence rules, and incorrect assumptions can be costly.

Are There Any Stamp Duty Exemptions?

In most cases, there is no need for stamp duty buy-to-let landlords if you are a first-time buyer. But, there are scenarios where the surcharge may not apply, such as:

  • Replacing a main residence (subject to strict conditions)

  • Certain property restructures or linked transactions

  • Refunds when a previous main home is sold within the permitted timeframe

These situations are technical and often misunderstood. Many landlords overpay SDLT simply because they do not seek professional advice early enough.

Why Stamp Duty Matters More for Landlords

Stamp duty is no longer just a tax consideration; it plays a major role in investment strategy. With higher rates now embedded, landlords must think carefully about:

  • Entry price versus long-term yield

  • Holding period and capital growth expectations

  • Whether a property still stacks up after SDLT and mortgage costs

  • Portfolio expansion versus consolidation

Read More: ​Landlord Property Management London

Common Stamp Duty Mistakes

Some of the most frequent issues include:

  • Assuming stamp duty rules are the same as for main homes

  • Underestimating the impact of the 5% surcharge

  • Missing deadlines for payment and refunds

  • Incorrectly assessing residency status

  • Failing to factor SDLT into overall investment returns

These mistakes can turn a good investment into a poor one.

How Cribs Estates Helps Landlords

Cribs Estates specialises in assessing whether a property still makes financial sense once stamp duty, rental demand, and long-term performance are taken into consideration.

If you are searching for stamp duty buy-to-let landlords, speaking to a local property professional wimbledon can help you make a better-informed decision before you commit.

Contact Cribs Estates to discuss buy-to-let opportunities and investment planning with confidence.

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