Stamp Duty on UK Property: What You’ll Pay if you dont find Smarter Ways to Invest in property
If you’re buying residential property in the UK — whether as your main home, a second home, or through a company, Stamp Duty Land Tax (SDLT) is likely to be…
If you’re buying residential property in the UK — whether as your main home, a second home, or through a company, Stamp Duty Land Tax (SDLT) is likely to be one of your largest upfront costs.
The rules can be complex. They vary based on the price, whether you already own a home, and whether you’re a UK resident. Investors and overseas buyers often face additional surcharges.
In this guide, we’ll explain:
- How stamp is calculated
- What surcharges apply to second homes, purchases through companies and by non-residents
- How to calculate your SDLT in seconds
- And how platforms like Housemartin offer a smarter, hands-off way to invest, without paying SDLT personally
What Is Stamp Duty Land Tax (SDLT)?
Stamp Duty Land Tax is a government tax payable on the purchase of residential or commercial property in England or Northern Ireland. It’s calculated based on the price of the property, but the amount can increase significantly depending on your circumstances.
UK Stamp Duty Rates in 2025 (Residential Property)
Stamp duty is calculated incrementally, meaning different portions of the property price are taxed at different rates. You only pay the higher rates on the amount above each threshold.
| Portion of Property Price | Standard SDLT Rate |
| Up to £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Over £1.5 million | 12% |
So, for example, if you buy a £1.2 million property:
- You pay 0% on the first £250,000
- 5% on the portion between £250,001 and £925,000
- 10% on the portion between £925,001 and £1.2 million
This tiered structure applies if you’re buying a property as your main residence and do not already own another home.
If you’re buying an additional property, purchasing via a company, or are not a UK resident, additional surcharges may apply, explained below.
Do Surcharges Apply to You?
On top of the standard bands, additional charges may apply:
- 5% surcharge if you already own a residential property (anywhere in the world)
- 2% surcharge if you’re not a UK resident for SDLT purposes
- 5% surcharge automatically if you’re buying through a company — even if it’s the company’s first property
HMRC treats all companies buying UK residential property as if they are acquiring an “additional dwelling.” This means the 5% surcharge applies by default. If the company is controlled from outside the UK, the 2% non-resident surcharge also applies, bringing the total surcharge to 7%.
Use Our Free Stamp Duty Calculator
To work out your SDLT quickly and accurately, use our free tool:
You’ll be asked to enter:
- Purchase price
- Whether you’re buying as an individual or company
- Whether you (or the company) already own property
- Whether you (or the company) are UK resident for SDLT purposes
It gives you:
- Total SDLT payable including surcharges
- The effective tax rate
Why SDLT Can Erode Your Investment Returns
If you’re buying a property as an investment or second home, stamp duty is more than just a tax — it’s a sunk cost. You’ll pay it upfront, and you won’t get it back when you sell.
That erodes your effective return — especially when combined with legal fees, mortgage costs, and future regulations like Making Tax Digital or the Decent Homes Standard.
A Smarter Way to Invest in UK Property Without Paying Stamp Duty Personally
Housemartin offers an alternative.
Instead of buying property directly, you invest in a loan to a company that purchases and manages the property, typically long-term supported living homes with inflation linked leases with charities and housing associations.
- The SPV pays all acquisition costs — including SDLT
- You earn monthly income, often inflation-linked
- You don’t pay stamp duty yourself, or need to manage tenants
- You can invest personally or via an ISA or SSAS for tax-free returns
More information on investing through Housemartin
What Happens When You Sell Your Investment?
Housemartin allows you to sell your investment on its secondary market — the Exchange.
When you exit, a new investor buys you out, and the price includes the original purchase costs (like stamp duty and legal fees). So your capital isn’t eroded by SDLT in the way it would be if you’d bought a property yourself.
Buy-to-Let vs Housemartin: Key Differences
| Feature | Traditional Property Purchase | Housemartin |
| Pays stamp duty | You | SPV (not you) |
| Upfront SDLT cost | Yes | No personal cost |
| SDLT recoverable? | No | Yes if sold on the Exchange |
| Landlord responsibilities | You | Managed for you |
| Rental void risk | You | Rent paid regardless of occupancy in lease term |
| Eligible for ISA/SSAS? | No | Yes |
Final Thoughts
Stamp duty is one of the most significant upfront costs in any UK property transaction. And with surcharges applying to second homes, companies, and overseas buyers, it can quickly eat into your investment returns.
If you’re looking for a smarter way to invest in UK residential property, with no personal SDLT, no landlord hassle, and potential tax-free income, Housemartin could be the solution.