Stamp duty rates untouched in Budget: 5% buy-to-let surcharge stays

Stamp duty rates did not change in the Budget presented on Wednesday 28 October 2026, so the 5% surcharge on additional homes stays in place. On the higher rates published on GOV.UK, a buy-to-let (BTL) investor in England or Northern Ireland pays £11,500 on a £200,000 purchase. A buyer who will own only that home pays £1,500.

What did the Budget change on stamp duty?

The Budget 2026 document, published by HM Treasury on 28 October, sets out its property measures under a "Property taxation" heading. Nothing in it changes the rates or thresholds of stamp duty land tax (SDLT, the tax paid when you buy property in England and Northern Ireland). Nor does any other part of the document. The higher rates for additional dwellings are not touched either.

The SDLT measures it does contain are narrow. SDLT group relief will now be withdrawn as intended when a purchaser leaves a group where the vendor company has been wound up. That applies to transactions in England and Northern Ireland from 29 October 2026, according to the Budget 2026 document.

The same document adds a relief for pooling Local Government Pension Scheme debt assets, from 28 October 2026 and before 1 April 2032. It also removes SDLT on rent paid under assured tenancies in England, effective from 1 May 2026, following the Renters' Rights Act 2025. All three measures will be legislated in Finance Bill 2026-27.

Reform had topped the industry's Budget wishlist, Mortgage Strategy reported on 28 October. It noted that Prime Minister Andy Burnham had previously ruled out stamp duty reform in the 2026 Autumn Budget. Anthony Curtis, director of mortgage broker FORTO Finance, said: "To my mind, this Budget just tinkered around the edges."

How much stamp duty does a buy-to-let purchase cost?

The higher rates on GOV.UK (checked 8 November 2026) are 5% up to £125,000 and 7% on the portion from £125,001 to £250,000. Then come 10% to £925,000, 15% to £1.5 million and 17% above that. They generally apply when you buy a home for £40,000 or more and will then own more than one residential property worth £40,000 or more anywhere in the world.

For example, take a £200,000 BTL flat. The rate is 5% on the first £125,000, which is £6,250, plus 7% on the remaining £75,000, which is £5,250. Your liability is £11,500. On the standard GOV.UK residential rates, the same flat as your only home costs 2% on £75,000, or £1,500.

So the surcharge adds £10,000 on a property worth £200,000, which is exactly 5% of the price. You can check your own figures with our free stamp duty calculator.

Jurisdiction matters here. SDLT applies in England and Northern Ireland only, according to GOV.UK. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, each with its own rates.

What does the surcharge mean for your deal numbers?

The £11,500 bill on the £200,000 example equals 5.75% of the purchase price. It is due in cash, because GOV.UK says the return must be sent and the tax paid within 14 days of completion. That money sits alongside your deposit, so it lowers the return on the cash you put in.

And the Budget raised the holding cost as well. From 6 April 2027, income tax on property income rises by two percentage points to 24%, 44% and 49%. Those rates cover England, Wales and Northern Ireland, according to the Budget 2026 document. We covered that in our report on Capital Gains Tax and the rental tax rise.

With both costs in view, you may wish to test the rent against lender criteria using our free stress test calculator.

Two groups pay more. Non-UK residents pay a further 2% surcharge on top of all other residential rates, including the higher rates, according to GOV.UK. Companies pay the higher rates on residential purchases of £40,000 or more, unless the interest bought is subject to a lease with more than 21 years left. Above £500,000, the 17% rate for corporate bodies may apply instead.

Whether to buy in your own name or through a company is a structure question, not a stamp duty one alone. Our business and systems guides cover how investors think about incorporation. You may wish to speak to your accountant before you choose.

What else in the Budget touches property investors?

The Annual Tax on Enveloped Dwellings (ATED, a yearly charge on some homes owned through companies) goes up by 3.5% for the 2027-28 charging period. The Budget 2026 document says that is in line with September 2026 CPI (the consumer prices index measure of inflation) and is provided for in existing legislation.

The High Value Council Tax Surcharge applies in England only. The Budget confirms a deferral scheme, discounts and exemptions, and a 100% premium on properties left empty and unoccupied for 12 months or more. The government will also consult on expanding third-party reporting of property income data, according to the same document.

The politics of stamp duty are not settled. Mortgage Strategy reported that the Conservatives have pledged to abolish stamp duty if they win the next general election. It also cited Yorkshire Building Society research from September finding that the tax deters millions of people from moving home. For now, the higher rates remain the figure to build into every purchase.

Key takeaways

• The Budget presented on 28 October 2026 made no change to SDLT rates, thresholds or the 5% surcharge on additional homes.

• A £200,000 buy-to-let purchase in England or Northern Ireland carries £11,500 in SDLT at the higher rates, against £1,500 for a buyer who will own only that home.

• SDLT must be paid within 14 days of completion, so the £11,500 on a £200,000 purchase adds 5.75% of the price to the cash you need.

• Non-UK residents pay a further 2% on top of the higher rates, and ATED charges rise by 3.5% for 2027-28.

• Income tax on property income rises by two percentage points from 6 April 2027, so both buying and holding costs have moved against investors.