Scope: this is the tax that diverges. SDLT in England and Northern Ireland, Land Transaction Tax in Wales, Land and Buildings Transaction Tax in Scotland. Rates below verified 8 August 2026; 2026/27.
Income tax and CGT reach across the UK. Purchase tax does not: it is devolved, the systems have different names, different bands and different thresholds, and a landlord buying either side of the border is in a different regime entirely. This is the money half of the divergence map.
England and Northern Ireland — SDLT
Standard residential rates:
| Portion of price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Plus 5% on top of every band where the purchase means you own more than one residential property — which is every buy-to-let, and every purchase by a company.
Wales — LTT
Higher residential rates, in force from 11 December 2024. Note these are not a surcharge added to the main rates: they are a separate table.
| Portion of price | Rate |
|---|---|
| Up to £180,000 | 5% |
| £180,001 – £250,000 | 8.5% |
| £250,001 – £400,000 | 10% |
| £400,001 – £750,000 | 12.5% |
| £750,001 – £1,500,000 | 15% |
| Above £1,500,000 | 17% |
For context, Wales’s main residential rates (a first or replacement home, from 10 October 2022) start with 0% up to £225,000 — a considerably higher nil-rate threshold than England’s £125,000. Wales is gentler on homes and harder on additional property.
The structural difference
England adds a surcharge to the standard table. Wales has a separate table with no nil-rate band at all for additional property: the first pound is taxed at 5%.
So a cheap Welsh rental is taxed from the first pound, while a cheap English one gets 5% on a band that would otherwise be 0%. The two systems reach a similar place at the bottom by different routes, and diverge as prices rise.
What both have in common
- Both are paid by the buyer, on completion, in cash, on top of the deposit.
- Both are capital costs: not deductible against rental income, but they increase your base cost and reduce the gain when you sell. Keep the completion statement.
- Both apply in full to a company purchase, which is why incorporating an existing portfolio is so expensive.
- Both are charged on the whole consideration, including in most cases debt assumed.
Which regime applies
The location of the property, not where you live or where your solicitor is. An English landlord buying in Cardiff pays LTT. Filing deadlines and the authority differ too — LTT returns go to the Welsh Revenue Authority, not HMRC.
And once you own it, the letting rules diverge as well: a Welsh property brings Rent Smart Wales, occupation contracts and the written statement. See Rent Smart Wales.
The purchase tax is one-off. The licensing is not. Check the council’s position before you exchange.
Information tool, not tax advice. Rates change; confirm the position at your completion date.