New announcement. Learn more


News and advice to help make your property business a success

Landlords TaxProperty TaxLandlords Tax ReturnsLandlords AccountsProperty Tax ReturnProperty AccountsLandlords FinancialTax ReturnsLandlords AccountantChartered AccountantsOnline AccountantOnline BookkeepingOnline Tax ReturnsTaxYour Online AccountantYour Online BookkeeperBusinessadviceAccountingVATCashflowProperty AccountantSmallbusinessBusinesstipsCapital Gains TaxExpensesInheritance TaxPropertySDLTTaxplanningCgtDividendsFurnished Holiday LettingsIhtexemptionsPAYEProperty bookkeeperTaxreturnAllowable Business ExpensesAnnual Exempt AmountBusiness ExpensesBusiness RateCapital AllowancesCapital GainsCapital gains tax propertyCashbasisComplianceDeductibleexpensesDisincorporationEmployment AllowanceFinanceFinancialmanagementGiftsHMRCHoliday Lets TaxIncome TaxInvestment Property TaxMaking Tax DigitalMakingTaxDigitalMileage AllowanceMobilephonesNICOverlapreliefPartnershipPartnershipbusinessesPensionPprProperty Company TaxProperty Tax Deductible ExpensesPropertyallowanceReimbursedexpensesRent a Room ReliefResidence ReliefSmall BusinessTax free incomeTimetoPayVAT invoice60 day capital gains limitAbolitionclass2AccrualsbasisAcquisitionsAdvisoryfuelratesAIAirBnBAlphabet sharesAmapAnnual Tax on Enveloped DwellingsAppealArtificial intelligenceAssessmentAsset disposalAssociated CompanyAssociated Company Tax RulesAutumnstatementBad DebtBad Debt Tax ReliefBaddebtsBadgesoftradeBeancounterBenefits in KindBreakeven PointBudgetBusiness adviceBusiness asset defermentBusiness coachBusiness ContinuityBusiness EntertainmentBusiness RatesBusiness Rates ReliefBusiness tipsBusinessgrowthBusinesstypesBuy or Lease EquipmentBuytoletCapital Allowances for CarsCapital GainCapitalallowancesCapitalexpenditureCar Capital AllowancesCarry Back LossesChange of Tax BasisChatGPTChild BenefitCIS SchemeCommon TenantCompanies ExpenditureCompanies HouseCompany Account DeadlinesCompany Account FilingCompany Strike OffCompany Tax Efficient PropertyCompanyassociationCompanyloanstaxfreeCompulsory Strike OffConstruction Industry SchemeContacthmrcContentmarketingContributionsCorporation Tax LossesCorporation Tax New RegimeCorporation Tax RatesCorporationTaxCostsCryptocurrencyCustomerlistimplicationsDeductible Business ExpensesDeductionsDemergerDepreciationDevelopmentDirectorsDirectors LoansDirectorsloansDisallowable Business ExpensesDiscoveryDividend allowanceDividend Allowance ReductionDividend PlanningDividendallowanceDLADomestic Items Tax ReliefDormantcompanyEmployee DiscountEmployee managementEmployeecompensationpaymentsEmployeeOwnershipTrustEndoflifeplanningEnquiryEnterpriseResourcePlanningEntertainmentEntrepreneurmindsetEquityExpenses Allowed For TaxExtrabenefitEyetestsFHLsFlippingFurnished Holiday Lets TaxGift AidGift AllowanceGrowthhacksHelp to pay tax billsHICBCHMO Licensing FeesHMRC complaintsHoldoverreliefHoliday Lettings TaxHow to apply for a Business LoanHow to Extract ProfitHumourHybridIllegaldividendsIncomeInflationary GainsInfluencersInheritance Tax Nil Rate BandInterest RatesInterestreliefInterestrestrictionISAJoint TenantKeypersoninsuranceLandlord RepairsLandlords Self AssessmentLate vat registrationLBTTLeadgenerationLeadmagnetLeanbusinessmodelLetting Agent DisbursementsLetting Agent RecharresLettingsLettings ReliefLimitedcompanyLiquidation DemergerLoaninterestLong Lets TaxLongserviceLTTMainresidencereliefManaged LetsManagement accountingMaritalhomedivorceMarriage allowanceMarriageallowanceMileage paymentMinimumwageMixedusesdltMortgage costsMortgage Interest ReliefNational InsuranceNew propertyNewcompanycarfuelratesNewnicrulesNIC 2023 to 2024NIC savingsNicdisregardNicreductionNMWNmwerrorsNon Allowable Business ExpensesNon-taxableNudgeletterOptiontotaxvatOverpayment ReliefPaperformParttimePatternofoccupancyPAYE by Direct DebitPayrollingPenaltypointsPension Payments Tax ReliefPensioncontributionsPensionsPerformance-reviewsPeriodofgracePeriodsofabsencePersonal ExpensesPersonal financePersonalallowancePersonalguaranteesPostcessationreliefPretradingexpensesProfitProfit-and-lossProfitAndLossProperty AllowanceProperty Development CompanyProperty IncorporationProperty Investment CompanyProperty investor accountsProperty investor tax tipsProperty LettingProperty Rental BusinessProperty TradingPropertycompanyRecharges by Estate AgentsRegularpaymentsReliefRent your driveRentalRentaroomResearch & DevolopmentResidential property gainsResidentialsdltRetail stock controlRetainedprofitsRevenueRoom for rent taxRtiSASalarySavingsSDLT changesSection 455 TaxSection455taxSelective Licences LandlordsSelf AssessmentSelf-employednicSelfemployedSelling OnlineSeperationServicechargesSettlementslegislationSimplified ExpensesSmallbizSmallbusinessratereliefSoftwareSpring BudgetStaffpartiesStamp dutySuccessJourneyTax Allowance on DrivewaysTax AllowancesTax BreakTax CodesTax DeadlinesTax DeductionsTax Filing DeadlinesTax Free ChildcareTax on Company VansTax positionTax ReliefTax tips for landlordsTaxbillpaymentsTaxconsequencesTaxincentivesTaxpositionTaxpositionassetsTaxreliefTaxreliefsTaxsesTerminationpaymentsTipsTrade professionalTrainingTransfer AssetsTransfer Assets Between SpousesUmbrellacompanyUndisclosedincomeUnpaid RentVAT Bad Debt ReliefVAT DeadlinesVAT DisbursementsVAT PenaltiesVAT registrationVAT Reverse ChargeVatpenaltiesVatregisteredVatregistrationthresholdWellbeingWorking from home

SDLT, LBTT and LTT hit of buying an investment property

SDLT, LBTT and LTT hit of buying an investment property

Where a property is purchased in England or Northern Ireland and the consideration exceeds the relevant threshold, stamp duty land tax will be payable. However, where the property is an additional residential property, a supplement applies. For properties in Scotland, the charge is to Land and Buildings Transaction Tax (LBTT) and in Wales, the charge is to Land Transaction Tax(LTT). As in England and Northern Ireland, a supplement applies to second and subsequent residential properties. As the supplements and charges vary, the location of the property will affect the tax that is payable.

England and Northern Ireland

Stamp Duty Land Tax on second and subsequent residential properties attracts a 3% supplement in addition to the usual residential rate. Although the residential SDLT threshold is set at £250,000, the supplement bites if the consideration is more than £40,000. The rates charged on second and subsequent residential purchases are shown in the following table.


Rate (including 3% supplement)

Up to £250,000


The next £675,000 (£250,001 to £925,000)


The next £575,000 (£925,001 to £1.5 million)


The remaining portion above £1.5 million



The supplement does not apply if the property is the only residential property that the purchaser owns anywhere in the world.


Tony owns a main residence and a property portfolio of three residential properties. He purchases a further residential investment property for £500,000. He pays SDLT of £27,500 on the purchase ((£250,000 @ 3%) + (£250,000 @ 8%)). This is an effective rate of 5.5%.

SDLT on commercial properties and mixed-use properties is payable at the non-residential rates. There is no SDLT to pay where the consideration is less than £150,000. Thereafter, SDLT is charged at 2% on the next £100,000 and at 5% on the remainder. There is no supplement.


Land and Buildings Transaction Tax applies to property purchases in Scotland. A supplement, the Additional Dwellings Supplement (ADS), applies on the purchase of an additional residential property in Scotland which has a value of £40,000 or more. Since 16 December 2022, the ADS has been set at 6%.

The rates charged on second and subsequent residential properties in Scotland are shown in the table below.


LBTT (including ADS)

Up to £145,000


Next £105,000 (£145,001 to £250,000)


Next £75,000 (£250,001 to £325,000)


Next £425,000 (£325,001 to £750,000)


Over £750,000




Tracey has a number of buy-to-let properties in Scotland. She purchases a further residential property for £500,000. She must pay LBTT of £53,350 ((£145,000 @ 6%) + £105,000 @ 8%) + (£75,000 @ 11%) + (£175,000 @ 16%)). This is an effective rate of 10.67%.


Purchases of property in Wales attract LTT. Higher residential rates apply to second and subsequent residential properties. The higher residential rates are shown in the table below.


Higher residential rate of LTT

First £180,000


Next £70,000 (£180,001 to £250,000)


Next £150,000 (£250,001 to £400,000)


Next £350,000 (£400,001 to £750,000)


Next £750,000 (£750,001 to £1.5 million)


Over £1.5 million




Tom has a property portfolio comprising four residential properties in Wales. He buys a further residential property in Wales for £500,000. He must pay LTT of £37,450 ((£180,000 @ 4%) + (£70,000 @ 7.5%) + (£150,000 @ 9%) + (£100,000 @ 11.5%)). This is an effective rate of 7.49%.