Stamp Duty Calculator and Guide to Stamp Duty for Investors 2023-24

If you’re new to property investment, calculating stamp duty for investment property may not be something you’re familiar with.

Like many other property-related terms, stamp duty tax is something that a beginner investor may not know much about. Even those buying a new home for non-investment purposes can often be left asking – what is stamp duty on property?

If you’ve just recently entered the investment world then it’s completely understandable that you may not know how to calculate stamp duty or understand how to work out stamp duty costs on an investment property.

However, understanding stamp duty on buy-to-let property is crucial to Property investment tips & advice and building a strong property portfolio.

If you’re asking, ‘how much stamp duty will I pay?’ depending on the value of the property, or you want to learn more about additional stamp duty tax rates for buy-to-let investors, this is the guide for you!

In this detailed guide to stamp duty, we offer you essential information on stamp duty for investors, along with tips on how to work out stamp duty on an investment property either by using our stamp duty calculator 2024 or by checking our stamp duty table containing the latest rates.

For those looking at it specifically from an investment perspective, you can also check out the buy-to-let stamp duty calculator for an indication of the tax band applicable to different types of investment properties.

In any case, if you want to learn more, simply keep scrolling to find out everything you need to know regarding UK stamp duty tax rates in 2023-2024!

For beginner buy-to-let investors and even those who have been in the game for a while, navigating the vast array of property-related terms can be overwhelming. You’ve got taxes, additional charges and the various types of real estate that can be purchased and rented out. But there’s one term that seems to cause more confusion than most – Stamp Duty!

For most people, stamp duty tax is an unavoidable charge on purchasing a UK property investment. However, the confusion surrounding it stems from the fact that it is referred to differently in England, Northern Ireland, Scotland and Wales.

There are also different stamp duty tax rates in these countries, which are subject to change depending on the value of the property, when it was purchased and whether or not you’re a first-time buyer.

This blog will focus more specifically on stamp duty tax in Scotland – referred to as Land and Buildings Transactions Tax – but it will also touch on the different rates and regulations across the UK to give you a rounded understanding of this essential property-related term.

Land Transaction Tax is one of the charges that influences the expense of purchasing land or property in Wales. While it is typically associated with the purchase of residential property, the tax also applies to non-residential acquisitions and leases, making it a comprehensive fiscal framework.

For this blog, however, we’ll remain focused on its association with residential property in Wales and what it means for those purchasing a property for the first time or as a buy-to-let investment.

Land Transaction Tax replaced Stamp Duty Tax in Wales in April 2018. As such, it now stands as the Welsh counterpart to the Stamp Duty Tax, highlighting the autonomy of the Welsh government to implement its fiscal policies regarding taxation, separate from the UK government in Westminster.

The case in Scotland is similar, where Land and Buildings Transaction Tax is the comparative charge on purchasing a property or land.

The Welsh Revenue Authority collects and manages Land Transaction Tax on behalf of the Welsh government, so you’ll find any updates or changes relating to these tax rates on the official Welsh government website.

With this in mind, it’s important to note that any announcements by the UK government concerning Stamp Duty Tax do not apply to property owners in Wales. Frequently, this can be a source of confusion for those investing in a UK property and wondering how much they owe regarding stamp duty.

Put simply, if you’re purchasing a property in Wales, Land Transaction Tax applies to you, not Stamp Duty or Land and Buildings Transaction Tax.

Further Reading: Learn more about the cost of buy-to-let and stamp duty for second homes with our comprehensive investment insights!

If you want to know how to work out stamp duty tax on purchases in accordance with the current standard rates in England and Northern Ireland, the below table of stamp duty prices will help you.

In short, you will only pay stamp duty on a primary residence when the property is worth or exceeds £250,000 in value. If you own an additional residential property, you will typically pay a higher rate of stamp duty – a further 5% in stamp duty tax.

Here is a guideline for the percentage of stamp duty for investors and those buying a primary residence in England and Northern Ireland in 2024.

SDLT Rates for a Single Property

As mentioned, 5% on top of these rates will apply on an additional property.

SDLT Rates for a First Home

So, now we know about stamp duty costs in England and Northern Ireland, but how much is stamp duty in the UK countries Wales and Scotland?

Stamp duty taxes work a little differently in Scotland and Wales compared to England. In Scotland, stamp duty tax is referred to as Land and Buildings Transaction Tax (LLBT), and in Wales, stamp duty taxes are Land Transaction Tax (LTT).

Below you can see the rates for the cost of stamp duty in Scotland. This table shows how much stamp duty you will pay on property purchases made in Scotland for land and buildings transaction tax.

Land and Buildings Transaction Tax Rates in Scotland

Notably, in December 2022, the Scottish Government increased the LLBT Additional Dwelling Supplement (ADS) – which is the stamp duty for investment property and secondary residences – from 4% to 6%. Savills have a LLBT calculator you can use to work out these rates for your purchase, and you can also use the table listed in this section of our blog. These rates are excluding ADS – this is important to keep in mind if you’re considering making a buy to let investment in the country.

Residential LBTT Rates in Scotland (Excluding ADS)

Land Transaction Tax Rates in Wales

The following table outlines the land transaction tax thresholds for those buying property in Wales which have now been in place since October 2022. Unlike in England, Scotland and Northern Ireland, there is currently no allowance for first-time buyers in Wales when it comes to paying LTT.

For a quick way to work out the cost of stamp duty in Wales, check out the Wales stamp duty calculator from the Welsh government website.

LTT Rates in Wales for a Main Residence

We hope you’ve found our guide to stamp duty on investment property purchases useful and have utilised our stamp duty buy-to-let calculator to work out how much you need to pay in stamp duty tax.

If you have any further questions about how the buy-to-let stamp duty rates apply to our investment opportunities, or you’ve used our stamp duty calculator on a BTL investment listed on our website and want to find out more, please don’t hesitate to get in touch.

We can offer any necessary guidance and help you move forward with your buy-to-let investment while ensuring you are aware of and have all the relevant information on any added expenses – such as stamp duty tax – that may come your way.

If you need further information on laws surrounding stamp duty for investors, or you have more questions on topics such as ‘When do you start paying stamp duty?’, it’s worth seeking the help of a financial adviser who can offer you detailed and informed advice.

Alternatively, if you want to widen your knowledge of all things property, then be sure to check out our free in-depth guides!

Here, you can learn about top UK investment areas in detail to help you decide on the best place to buy property and kickstart your investment journey.

You can also learn more about the latest stamp duty facts in our guide to stamp duty on buy-to-let property.

Stamp Duty Calculator and Guide to Stamp Duty for Investors 2023-24