BTL (Buy-to-let) stamp duty is a tax imposed by the UK government on the purchase of additional residential properties. The calculation of BTL stamp duty can be a bit complicated, but the following steps will help you understand how it is calculated.

BTL Stamp Duty Calculator

  1. Determine the value of the property: The first step is to determine the value of the property you are buying. This is usually the purchase price.
  2. Determine the tax band: BTL stamp duty rates are determined by tax bands, and the rate you pay depends on the value of the property. The current tax bands for BTL stamp duty are:

  • Up to £500,000 – 3%
  • £500,001 to £925,000 – 8%
  • £925,001 to £1.5 million – 13%
  • Over £1.5 million – 15%

  1. Calculate the tax: Once you have determined the tax band, you can calculate the amount of stamp duty you will need to pay. To do this, you need to apply the relevant tax rate to the value of the property. For example, if the value of the property is £600,000, you would need to pay 3% on the first £500,000 and 8% on the remaining £100,000.

Here’s an example of how to calculate BTL stamp duty:

Let’s say you are buying a property for £600,000. To calculate the BTL stamp duty, you would need to:

  • Pay 3% on the first £500,000 = £15,000
  • Pay 8% on the remaining £100,000 = £8,000

The total amount of BTL stamp duty you would need to pay in this scenario would be £23,000.