Guide · 9 min read
Three nations, three regimes: SDLT (England/NI), LBTT (Scotland), LTT (Wales). The 2024 surcharge increase to 5% (England) and 8% ADS (Scotland), with worked examples per nation.
Written by Matt Lenzie · Published 19 May 2026
Advice from
Matt Lenzie · 25+ year career banker (Bank of Scotland, Lloyds Banking Group). £300m+ raised for property clients.
25+ year career banker (Bank of Scotland, Lloyds Banking Group). £300m+ raised for property clients.
Stamp duty is the biggest single cost on a buy-to-let purchase after the deposit, and the line most landlords under-budget for. Since the Autumn 2024 Budget, the additional-dwelling surcharge in England and Northern Ireland jumped from 3% to 5%, a meaningful change that hits any landlord, SPV, or second-home buyer. Scotland and Wales have their own regimes, with Scotland's ADS sitting at 8% in 2026.
This guide walks through the three-nation stamp-duty regime as it actually stands in May 2026, with worked numbers across typical BTL purchase prices.
UK stamp duty on property purchase is devolved. The three regimes:
Each has its own bands, its own rates, and its own additional-dwelling surcharge. The three regimes have moved in roughly the same direction over the past decade (additional-dwelling surcharges have risen everywhere) but the exact numbers are different.
The Autumn 2024 Budget made two changes that affect BTL buyers from late 2024:
The 2026 BTL SDLT table:
| Price slice | Standard rate | BTL rate (+5% surcharge) |
|---|---|---|
| £0, £125,000 | 0% | 5% |
| £125,001, £250,000 | 2% | 7% |
| £250,001, £925,000 | 5% | 10% |
| £925,001, £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
Worked examples for typical BTL purchase prices:
| Purchase price | SDLT (BTL) | Effective rate |
|---|---|---|
| £150,000 | £8,250 | 5.5% |
| £200,000 | £11,250 | 5.6% |
| £250,000 | £15,000 | 6.0% |
| £300,000 | £20,000 | 6.7% |
| £400,000 | £30,000 | 7.5% |
| £500,000 | £40,000 | 8.0% |
| £750,000 | £65,000 | 8.7% |
| £1,000,000 | £91,250 | 9.1% |
At a £300,000 BTL purchase, SDLT alone is £20,000, material against a £75,000 deposit and the rest of the transaction costs. Many landlords budget 25% deposit and forget the SDLT slice on top.
Scotland's regime is meaningfully harsher on BTL than England. The Additional Dwelling Supplement was raised from 6% to 8% on 5 December 2024. Combined with LBTT's lower band thresholds, the all-in stamp duty on a Scottish BTL purchase is materially higher than the English equivalent.
The 2026 Scottish BTL LBTT table:
| Price slice | Standard LBTT | BTL LBTT (+8% ADS) |
|---|---|---|
| £0, £145,000 | 0% | 8% |
| £145,001, £250,000 | 2% | 10% |
| £250,001, £325,000 | 5% | 13% |
| £325,001, £750,000 | 10% | 18% |
| Over £750,000 | 12% | 20% |
Worked examples:
| Purchase price | Scotland BTL LBTT | Effective rate |
|---|---|---|
| £150,000 | £11,700 | 7.8% |
| £200,000 | £16,700 | 8.4% |
| £250,000 | £21,700 | 8.7% |
| £300,000 | £28,200 | 9.4% |
| £400,000 | £44,950 | 11.2% |
| £500,000 | £62,950 | 12.6% |
On a £300,000 BTL purchase in Edinburgh or Glasgow, you'll pay £28,200 LBTT, roughly £8,000 more than the equivalent SDLT in England. The Scottish BTL maths needs the rent (typically higher in % yield terms in cities like Aberdeen, Dundee, parts of Glasgow) to compensate.
Wales sits between England and Scotland on BTL stamp duty harshness. The higher-rate residential LTT surcharge is 5%, same as England, but the underlying LTT bands are slightly different.
| Price slice | Standard LTT | BTL LTT |
|---|---|---|
| £0, £225,000 | 0% | 5% (slice 0-180k); 8.5% (180-225k) |
| £225,001, £400,000 | 6% | 11% (slice 225-250k); 11.5% (slice 250-400k) |
| £400,001, £750,000 | 7.5% | 13% (slice 400-750k) |
| £750,001, £1,500,000 | 10% | 15.5% |
| Over £1,500,000 | 12% | 17% |
Note: Wales uses a tiered "higher rate residential" schedule that's not a simple +5% additive, the bands are restructured. The effective rates above are illustrative; use the calculator for the exact figure on your purchase.
Worked examples:
| Purchase price (Wales) | BTL LTT | Effective rate |
|---|---|---|
| £150,000 | £7,500 | 5.0% |
| £200,000 | £10,000 | 5.0% |
| £250,000 | £14,625 | 5.9% |
| £300,000 | £20,375 | 6.8% |
| £400,000 | £31,875 | 8.0% |
| £500,000 | £44,875 | 9.0% |
An SPV buying a residential property is treated as buying an "additional dwelling" by default, regardless of whether the SPV is brand-new and owns no property. The 5% surcharge (England), 8% ADS (Scotland), or 5% surcharge (Wales) applies from £1.
The narrow exception is the multiple-dwellings purchase: an SPV buying 6+ residential properties in one transaction may elect to be taxed as non-residential, which carries a lower rate ceiling. This is genuinely useful for portfolio acquisitions but only for that specific structure. Single-property SPV BTL pays the full additional-dwelling surcharge.
If you buy an additional dwelling because your previous main residence hasn't sold yet, and you then sell that previous main residence within 36 months of the purchase, you can apply for a refund of the surcharge element of the stamp duty paid. This applies to SDLT, LBTT and LTT.
The refund only applies where the second purchase replaces a main residence, not to pure BTL investments where you keep your existing home. For BTL purchases where you keep your home, there's no refund: the surcharge is a cost of doing business.
The realistic rule of thumb for BTL transaction costs (purchase price + cash needed):
| Purchase price (England) | Deposit (25%) | SDLT (BTL) | Other costs ~ | Total cash needed |
|---|---|---|---|---|
| £200,000 | £50,000 | £11,250 | £8,500 | £69,750 |
| £250,000 | £62,500 | £15,000 | £9,500 | £87,000 |
| £300,000 | £75,000 | £20,000 | £10,500 | £105,500 |
| £400,000 | £100,000 | £30,000 | £12,500 | £142,500 |
| £500,000 | £125,000 | £40,000 | £14,500 | £179,500 |
"Other costs" includes legal fees, valuation, lender arrangement fee, broker fee, basic property setup, and a 3-month rental reserve. The SDLT line is typically 12-25% of total cash needed, material. Full BTL deposit breakdown here.
For your specific case, run the calculator or book a call.
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