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Buy to let stamp duty calculator on second homes

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Aug 12, 2022

Stamp duty buy to let calculator on second homes.

Many landlords and potential landlords ask us about Stamp Duty rates and buy-to-let (BTL) property prices.

Stamp Duty is charged using a tiered system. This can make it difficult to calculate how much you will have to pay stamp duty.

This can discourage potential landlords from moving forward with a mortgage to buy and let simply because they don’t know how much it will cost them in fees.

Good news: Our advisors have extensive knowledge of Stamp Duty and Buy-to-Let properties.

They will provide clear information that will enable you to make the right decision about whether or not to buy a mortgage to let.

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What Stamp Duty Land Tax (SDLT) will I have to pay for a buy-to-let?

There are several stamp duty rules. It will depend on many factors, such as whether you are a first-time home buyer or if your property is already owned and you are using a second mortgage for rental purposes.

What is the BTL Stamp Duty I should pay for a first-time buyer

In 2015, George Osborne, then-chancellor, announced that Stamp Duty would be changing to support homeownership.

This is great news for first-time buyers. If their first property is less than £500,000, they won’t have to pay the new stamp duty on the first £300,000. They will then be charged 5%.

What Stamp Duty will I have to pay on a second property if I intend to rent it out?

Many are already homeowners of a residential property and want to buy a property to rent out as a rental income source, also known as a buy-to-let property.

A Stamp Duty will also be charged to anyone who purchases a second property (buy to let or buy to rent) starting April 1, 2016.


Where can I find a Buy-to-Let Stamp Duty calculator?

HMRC offers a reliable Stamp Duty calculator online.

It can be used for the following property types:

  • BTLs are for first-time buyers
  • Properties to replace a primary residence
  • Additional property purchases (including BTL).
  • Non-residential or residential (including BTL).
  • Leasehold or freehold (includes BTL)

If you have used HMRC’s Stamp Duty calculator but are still unsure how much you should pay, send an enquiry to the expert mortgage brokers. We offer free mortgage advice; no matter how many properties you have, we can discuss the government-introduced stamp duty.

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Stamp Duty in Scotland: Buy to Let

Stamp Duty in Scotland was repealed in April 2015 and was replaced by land and buildings transaction taxes (LBTT).

While many of the basic features of each tax system may be similar, some differences exist in the stamp duty rate charged.

How to avoid paying Stamp Duty on Buy to Let

Stamp Duty may not be payable in certain circumstances, such as when you purchase a caravan, mobile house or houseboat. This could make it a more affordable option, especially for first-time buyers on a tight budget.

First-time buyers do not have to pay Stamp Duty for the first £300,000. This applies even if the property is under £500,000.

Transactions that are not paid for are exempt from Stamp Duty. This could happen if the property is transferred after a divorce or in relation to a Will.

Can I buy Stamp Duty relief?

You may be eligible for Stamp Duty relief or stamp duty holiday, depending on your situation.

HRMC has published Stamp Duty guidelines to inform buy-to-let landlords about tax relief options such as buildings transaction tax and stamp duty land tax. For more information, visit the government website.

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Multiple dwellings

Stamp Duty tax relief may be available if you purchase more than one dwelling, and the transactions include a freehold agreement or leasehold agreement.

HMRC charges multiple dwellings a different tax rate.

  • Divide the total cost of the property by the number of dwellings.
  • Based on this figure, calculate the tax.
  • Multiply the tax amount by the number of dwellings

An employer buying a house for an employee

An agreement in some employment contracts stipulates that the employer buys property for employees to live in during their employment.


  • The employee agrees to live on the property for at least two years before their employer buys it.
  • The employer can only purchase land within 0.5 hectares
  • An employee has to move because of job relocation. Therefore, the employer must accept the property.
  • The employer pays no more than the market price for the property

If the landlord is registered as a social landlord

In the following situations, a registered social landlord may be eligible for the tax relief:

  • Tenants who live in registered social landlords’ properties make up most of the board members.
  • A qualified body, such as a local council, is the seller of the property.

Property developers buy properties.

A few property developers will buy a home from a homeowner who wants to buy a new house.

In such cases, the property developer is exempted from Stamp Duty when the home is purchased.

The individual selling the property must, however:

  • Have lived in the property as their primary or sole residence for at least two years before the building company or property dealer bought it
  • A house builder can help you buy a new home.
  • Accept to live in the property as their primary or sole residence (and not rent it out).

What Stamp Duty expenses can I claim?

Many want to know if Stamp Duty can be applied against rental income. Stamp Duty is a purchase cost that cannot be refunded.

An expense must be incurred to rent the property to be tax-deductible as rental income. This includes:

  • They will be accepted if the repairs and maintenance aren’t made to increase the property’s value.
  • Management fees
  • Utility bills for common areas like electricity, gas, and water
  • Salaries (If you have to hire someone to manage the rental property).

This does not mean that your Stamp Duty fee should be entirely written off.

You can deduct the gain if you sell your property, if it increases in price, to lower your Capital Gains tax.

Tips for buying to allow Stamp Duty

  • Talk to a broker specialising in mortgages for buy-to-let
  • Consider whether obtaining a Special Purpose Vehicle Mortgage might be a better option. You may qualify for tax benefits
  • You may be eligible to refinance your mortgage from a single name to a limited business without additional Stamp Duty if you are a landlord. To support this, you will need to provide proof of income.

Do I need to seek advice on buy-to-let mortgages and Stamp Duty?

Yes. Calculating your expenses and any tax relief you may be eligible for can be challenging. You should seek professional assistance from someone with experience with buy-to-let mortgages and stamp duty.

Personal circumstances can impact how much Stamp Duty you have to pay. Talk to one of our expert brokers about your options before you buy a property to rent.

Our advisors can not only help you calculate Stamp Duty tax, but they can also save your time and money.

They will access hundreds of Buy-to-Let mortgage lenders and can compare different deals to lower your costs.

Send an enquiry to get started on your Buy to Let mortgage process. Learn more about Stamp Duty and how it could impact you.

Ask a buy-to–let expert about stamp duty you will pay

Call today to ask questions about Stamp Duty and get the right advice from our mortgage brokers regulated by the financial conduct authority.

Relax, and let us find the best broker for your situation. There is no charge and absolutely no obligation to improve your credit rating.

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