{"id":166,"date":"2019-05-29T12:52:39","date_gmt":"2019-05-29T11:52:39","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=166"},"modified":"2025-02-19T16:51:27","modified_gmt":"2025-02-19T16:51:27","slug":"landlords-list-of-taxes","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/landlords-list-of-taxes\/","title":{"rendered":"What taxes do landlords have to pay in the UK?"},"content":{"rendered":"\n

There are five main types of tax that landlords have to pay:<\/p>\n\n\n\n

1. Stamp Duty<\/h2>\n\n\n\n

Stamp duty is usually the first tax that landlords have to deal with. The Stamp Duty rate depends on the property purchase price.<\/p>\n\n\n<\/div> \n\n

\n
\n

Stamp duty land tax<\/b> (SDLT) rates in the current tax year, 2025\/26 \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
Buyer type<\/b><\/td>\nProperty value<\/b><\/td>\nTax rate<\/b><\/td>\n<\/tr>\n
First time buyer<\/span><\/td>\nUp to \u00a3300,000<\/span><\/td>\n0%<\/span><\/td>\n<\/tr>\n
\u00a3300,001 – \u00a3500,000<\/span><\/td>\n5%<\/span><\/td>\n<\/tr>\n
Property owner<\/span><\/td>\nUp to \u00a3125,000<\/span><\/td>\n0%<\/span><\/td>\n<\/tr>\n
\u00a3125,001 – \u00a3250,000<\/span><\/td>\n2%<\/span><\/td>\n<\/tr>\n
\u00a3250,001 – \u00a3925,000<\/span><\/td>\n5%<\/span><\/td>\n<\/tr>\n
All buyers<\/span><\/td>\n\u00a3925,000 – \u00a31.5m<\/span><\/td>\n10%<\/span><\/td>\n<\/tr>\n
\u00a31.5m+<\/span><\/td>\n12%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

If you\u2019re buying an additional property (i.e. landlords, holiday properties), you\u2019ll pay an extra 3% SDLT<\/strong> on the above rates.\u00a0<\/span><\/p>\n\n <\/div>\n<\/div> \n\n

\n\n\n\n\n\n

You pay an\u00a0additional<\/strong> rate if you’re buying either a buy-to-let property or a second home. But be aware that Scotland<\/a>\u00a0and\u00a0Wales<\/a>\u00a0have different rates and exemptions.<\/p>\n\n\n\n

Want to work out what you owe in Stamp Duty? Try our Stamp Duty calculator<\/a>.<\/p>\n\n\n\n

2. Rental Income Tax<\/h2>\n\n\n\n

To calculate it, add the rent (minus expenses) to your other income sources: this determines your tax band<\/a>.<\/p>\n\n\n<\/div> \n\n

\n
\n

The <\/span>income tax<\/b> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
Income<\/strong><\/td>\nTax rate<\/strong><\/td>\nTax band<\/strong><\/td>\n<\/tr>\n
Up to \u00a312,570<\/span><\/td>\n0%<\/span><\/td>\nPersonal allowance<\/span><\/td>\n<\/tr>\n
\u00a312,571 to \u00a350,270<\/span><\/td>\n20%<\/span><\/td>\nBasic rate<\/span><\/td>\n<\/tr>\n
\u00a350,271 to \u00a3125,140<\/span><\/td>\n40%<\/span><\/td>\nHigher rate<\/span><\/td>\n<\/tr>\n
over \u00a3125,141<\/span><\/td>\n45%<\/span><\/td>\nAdditional rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n
\n\n\n\n\n\n

Check out our guide to paying tax on rental income<\/a> for more information.<\/p>\n\n\n\n

3. National Insurance<\/h2>\n\n\n\n

There are two types of National Insurance that you’ll need to pay. Class 1 and Class 4.<\/p>\n\n\n<\/div> \n\n

\n
\n

National Insurance<\/b> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
NI class<\/strong><\/td>\nWho pays?<\/strong><\/td>\nHow much?<\/strong><\/td>\n<\/tr>\n
Class 1<\/span><\/td>\nEmployees earning over \u00a312,570<\/span><\/td>\n8% on earnings between \u00a3242 and \u00a3967 per week<\/span><\/p>\n

2% if you earn \u00a3967+ per week<\/span><\/td>\n<\/tr>\n

Class 1A\/1B<\/span><\/td>\nEmployers<\/span><\/td>\n15%<\/span><\/td>\n<\/tr>\n
Class 3<\/span><\/td>\nVoluntary contributions<\/span><\/td>\n\u00a317.75 per week<\/span><\/td>\n<\/tr>\n
Class 4<\/span><\/td>\nSelf-employed earning over \u00a312,570<\/span><\/td>\n6% on profits between \u00a312,570-\u00a350,270<\/span><\/p>\n

2% on profits over \u00a350,270<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n

\n\n\n\n\n\n

4. Capital Gains Tax (CGT)<\/h2>\n\n\n\n

You need to pay CGT when you sell property for a profit. Check out our\u00a0CGT calculator<\/a>\u00a0for more details.<\/p>\n\n\n<\/div> \n\n

\n
\n

Capital gains tax<\/b> rates in the 2025\/26 tax year. It\u2019s paid on profits over the \u00a33,000 CGT allowance \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
Type of asset<\/b><\/td>\nBasic rate<\/b><\/td>\nHigher rate<\/b><\/td>\n<\/tr>\n
Shares<\/span><\/td>\n10%<\/span><\/td>\n20%<\/span><\/td>\n<\/tr>\n
Residential property<\/span><\/td>\n18%<\/span><\/td>\n24%<\/span><\/td>\n<\/tr>\n
Bitcoin\/cryptocurrency<\/span><\/td>\n10%<\/span><\/td>\n20%<\/span><\/td>\n<\/tr>\n
Other<\/span><\/td>\n10%<\/span><\/td>\n20%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n
\n\n\n\n\n\n

You don’t pay CGT when your profit is less than the CGT allowance or if you’re selling your main home<\/a>.<\/p>\n\n\n\n

In order to pay CGT on property, you must use HMRC\u2019s Real Time Capital Gains Tax Service<\/a>. This requirement came into place in April 2020.<\/p>\n\n\n\n

5. Inheritance tax<\/h2>\n\n\n\n

Inheritance tax<\/a> is a tax on everything you leave to people when you pass away, also called your estate<\/a>.<\/p>\n\n\n<\/div> \n\n

\n
\n

Inheritance tax (IHT)<\/b> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
Inheritance type<\/b><\/td>\nTax-free threshold<\/b><\/td>\nRate payable after threshold<\/b><\/td>\n<\/tr>\n
Standard<\/span><\/td>\n\u00a3325,000<\/span><\/td>\n40%<\/span><\/td>\n<\/tr>\n
Children, grandchildren<\/span><\/td>\n\u00a3500,000<\/span><\/td>\n40%<\/span><\/td>\n<\/tr>\n
Spouse, civil partner, charity<\/span><\/td>\nNo limit<\/span><\/td>\n0%<\/span><\/td>\n<\/tr>\n
Charity donation<\/span><\/td>\n10% or more of estate value\u00a0<\/span><\/td>\n36%<\/span><\/td>\n<\/tr>\n
Small gifts<\/span><\/td>\n\u00a33,000 per tax year<\/span><\/td>\n40%<\/span><\/td>\n<\/tr>\n
Agricultural property<\/span><\/td>\n\u00a31m*<\/span><\/td>\n20%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*there\u2019s also a 50% tax relief for farmers with land worth more than \u00a31m. <\/span>Check out HMRC<\/span><\/a> for more on this.\u00a0<\/span><\/p>\n\n <\/div>\n<\/div> \n\n

\n\n\n","protected":false},"excerpt":{"rendered":"

There are five main types of tax that landlords have to pay: 1. Stamp Duty Stamp duty is usually the first tax that landlords have to deal with. The Stamp Duty rate depends on the property purchase price. You pay an\u00a0additional rate if you’re buying either a buy-to-let property or a second home. But be […]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[453,452],"tags":[70,348,137,421],"class_list":["post-166","post","type-post","status-publish","format-standard","hentry","category-general-landlord-faqs","category-landlord-tax-returns","tag-capital-gains-tax","tag-income-tax","tag-national-insurance","tag-property"],"acf":[],"yoast_head":"\nWhat taxes do landlords have to pay in the UK? – Taxfix<\/title>\n<meta name=\"description\" content=\"There are five taxes that landlords must pay in the UK: Stamp Duty, Income Tax, National Insurance, Capital Gains Tax, and Inheritance Tax.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/landlords-list-of-taxes\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What taxes do landlords have to pay in the UK? 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