Following the announcement of special “landlord tax” Buy-to-let investors will pay thousands of pounds extra in tax when they buy a property. From 1st April 2016 Stamp duty rates for buy-to-let investors and holiday homes will be three percentage points higher.

This same rate will apply to buying other second properties, such as holiday homes, where the owners do not intent to live full-time.

Property value Stamp duty rate for owner-occupiers Stamp duty rate for second property/buy-to-let
(No duty payable properties costing under £40,000)
Up to £125,000 Zero 3%
The next £125,000 (the portion from £125,001 to £250,000) 2% 5%
The next £675,000 (the portion from £250,001 to £925,000) 5% 8%
The next £575,000 (the portion from £925,001 to £1.5 million) 10% 13%
The remaining amount (the portion above £1.5 million) 12% 15%


These rates will not apply to purchases of caravans, mobile homes or houseboats, or to corporate entities or funds making significant investments in residential property. The government is yet to consult on the policy detail, including a possible exemption for corporate entities and funds owning more than 15 residential properties.