People often ask me what the stamp duty tax bands for buy-to-let properties and commercial properties are generally. This blog sets out the SDLT rates in one easy to find place and also gives some guidance on when these rates are charged.

What are the Stamp Duty Tax Bands for Buy to Let?

The stamp duty charge on the purchase of additional residential properties by individuals including buy to let is 3% above the normal SDLT residential rates and is charged on the slices of the price of the property that fall into each band.

The rates are set out in an alternative ‘Table A: Residential’ that is substituted for the normal Table A for when there is a higher rates transaction. The following table shows a comparison of the rates in both versions of Table A:

Table A: Residential

BandBasic residential SDLT ratesAdditional SDLT rates
£0–£125k0%3%
£125k–£250k2%5%
£250k–£925k5%8%
£925k–£1.5m10%13%
£1.5m+12%15%

Transactions under £40,000 do not require a tax return to be filed with HMRC and are not subject to the additional charge.

When entering the code for “Type of property” in the SDLT return, Code 04 should be used instead of Code 01 when the higher rates for additional dwellings apply.

Acquisitions of mixed residential and non-residential property remain exempt from residential rates and do not attract the 3% additional charge, and are charged under the rates in Table B also using the ‘slice’ system with a maximum rate of 5% for consideration above £250,000. You can find out about the charge in much more detail here.

Stamp Duty Tax Bands for Commercial Property 

Where the land consists of or includes land that is not residential property, the percentages in Table B apply:

Table B: Non-Residential or Mixed

Relevant considerationPercentage
So much as does not exceed £150,0000%
So much as exceeds £150,000 but does not exceed £250,0002%
The remainder (if any)5%

If the transaction forms part of a number of linked transactions the relevant consideration for the purpose of the table above is the total of the chargeable consideration for all the linked transactions.

If you have any questions or need advice about SDLT on buy to let or commercial property contact Patrick Cannon now.

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