Understanding Stamp Duty Land Tax (SDLT) in England
If you are considering buying a holiday lodge, let us explain some additional costs that you will need to be aware of before purchasing that perfect pad and Stamp Duty is one of them.
We’ve also got a information page about Furnished Holiday Let Tax Guide too!
Read on and we’ll explain more about Stamp Duty..
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What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax levied on the purchase of property or land in England and Northern Ireland. Whether you’re a first-time buyer, moving home, or investing in additional property, understanding SDLT is essential for managing your finances effectively.
For full information read the official Gov.uk page on Stamp Duty Land Tax
SDLT for Holiday Lets
When purchasing a holiday let, there are specific considerations to be aware of. These properties are often classified as additional dwellings, which means higher SDLT rates typically apply.
Stamp Duty Rates for Holiday Lets (As of April 2025)
The following rates apply to additional properties, including holiday lets:
- Up to £125,000: 5%
- £125,001 to £250,000: 7%
- £250,001 to £925,000: 10%
- £925,001 to £1,500,000: 15%
- Over £1,500,000: 17%
Example: SDLT Calculation on a £500,000 Holiday Let
If you purchase a holiday let for £500,000, your SDLT would be calculated as follows:
- 5% on the first £125,000 = £6,250
- 7% on the next £125,000 = £8,750
- 10% on the remaining £250,000 = £25,000
Total SDLT: £40,000
How to Calculate SDLT
You can calculate SDLT easily using official online calculators provided by HM Revenue & Customs (HMRC). These tools allow you to input the purchase price and property details to estimate the tax due.
👉 Use the HMRC Stamp Duty Calculator
Reliefs and Exemptions
Certain reliefs and exemptions may apply:
- Properties under £40,000: Generally exempt from SDLT.
- Multiple Dwellings Relief (MDR): May apply if buying more than one property in a single transaction.
- Off-plan or land purchases: If you’re buying land to build a holiday let, the higher additional property rates may not apply, depending on the circumstances.
Got a tax question? Zeal have a free helpline for Sykes and sister brand owners, get in touch via Sykes@gozeal.co.uk, and as a Sykes and brand owner, you have the benefit of exclusive 10% discount on standard fees. Or Call Zeal on 01244 352309 today!
Filing and Paying SDLT
An SDLT return must be filed with HMRC, and the tax paid within 14 days of completion. This is usually handled by your solicitor or conveyancer as part of the property transaction.
More Information
For full details and the most up-to-date guidance on rates, visit the official Stamp Duty Land Tax page on GOV.UK.
Conclusion
Purchasing a holiday let involves higher SDLT rates compared to primary residences, but understanding these rates and potential reliefs can help you manage the costs effectively. If you have any specific questions or need further details, feel free to ask! or for more information read our sister company Sykes Cottages blog – Stamp Duty on Holiday Lets: A Complete Guide
Want to know more about holiday letting in the Lake District? Give our lovely local team a call on 01539 761514. You can also drop us an email at newowners@lakedistrictlodgeholidays.co.uk. Alternatively request your FREE owner pack here
Disclaimer
Lake District Lodge Holidays can’t advise you on, and isn’t responsible for, tax matters in relation to your holiday let and the above should not be taken as such, rather as a prompt of the issues involved for further consideration. As always, please read the relevant laws, regulations and guidance and seek advice from external experts where you require it. Lake District Lodge Holidays hopes that by pointing you in the direction of an expert in the field, it’s starting you off on the right foot, and you can read into this matter further and seek your own advice from Zeal, or your chosen advisor, as and when you feel it’s needed. We cannot make any representations or warranties of any kind as to the competency, qualification, fitness for purpose, accuracy, reliability, suitability, or availability of Zeal’s offers, products or services. If you choose to enter into any arrangement for the supply of goods or services of a supplier listed in this newsletter or links, you do so entirely at your own risk. Any such arrangement is between you and the supplier. We are not a party to it. We shall not be liable for any loss or damage arising under or in connection with any such arrangement or any action or decisions you take or do not take as a result of reading the above or any loss suffered as a result.
