Property tax guides for investors
Stamp duty, capital gains and the rules that change the maths on every deal — explained in plain English for landlords, investors and developers. We arrange the finance; you confirm the tax with your accountant.
Tax is rarely the reason a property deal works, but it is often the reason one stops working. Knowing roughly what you will owe — before you offer — keeps your returns honest and your cash-flow intact.
The taxes that hit a property deal
For most investors, landlords and developers, three taxes do the heavy lifting. A purchase tax when you buy — Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land and Buildings Transaction Tax (LBTT) in Scotland, or Land Transaction Tax (LTT) in Wales. Capital gains tax (CGT) when you sell an investment property for a profit. And ongoing income or corporation tax on the rent, depending on whether you hold personally or through a company.
Why the surcharges matter most
If you already own a property, buying another usually triggers a higher-rate surcharge on the purchase tax. In England and Northern Ireland that is a 5 percentage-point SDLT surcharge on every band; in Scotland the Additional Dwelling Supplement; in Wales the higher residential LTT rates. The same surcharges generally apply when you buy through a limited company or SPV. On an investment purchase that surcharge is often the single largest line in your acquisition costs, so it pays to model it before you commit.
Personally or through a company?
How you hold a property changes the tax on the rent and on the eventual sale, and it changes how a lender looks at you. There is no one-size-fits-all answer — it turns on your wider income, your plans for the portfolio and how long you intend to hold. That is a conversation for your accountant; our job is to make sure the finance works whichever route you choose.
Confirm before you commit, not after
- Purchase tax (SDLT / LBTT / LTT) — including any additional-property or company surcharge.
- Capital gains tax on a future sale, and the reliefs that may reduce it.
- Income or corporation tax on the rent, and how that shifts personal vs. company.
This is general information, not tax advice — confirm figures with your accountant or conveyancer. Rates, thresholds, reliefs and surcharges change, and your exact liability depends on your circumstances.
Pick the guide that fits your deal
Stamp duty on a second home
How the 5% additional-property surcharge stacks on top of standard SDLT — with a worked example.
SDLT on commercial property
Non-residential and mixed-use SDLT bands, and when the lower commercial rates apply.
Capital gains tax on property
CGT rates, the annual exempt amount and the reliefs that cut a landlord or developer’s bill on sale.
Stamp duty for a limited company
How SDLT works when you buy through an SPV or limited company, including the surcharge and the 17% flat rate.
LBTT in Scotland
Land and Buildings Transaction Tax bands and the Additional Dwelling Supplement on Scottish purchases.
LTT in Wales
Land Transaction Tax main and higher residential rates, plus the non-residential bands.
Estimate the tax before you offer
We arrange the finance; you confirm the tax
Vortex Finance is a whole-of-market property finance broker. We don’t give tax advice. Once your accountant has confirmed the numbers, we compare suitable borrowing for your purchase or refinance.
Whichever way the tax points, the finance has to work:
- Buy-to-let mortgages — for personal and limited-company landlords.
- Commercial mortgages — for offices, retail, industrial and mixed-use.
- Bridging loans — to move fast at auction or break a chain.
- Development finance — to fund a build or heavy refurbishment.
Tax sits alongside the wider rules landlords have to meet — see our landlord compliance guides on the Renters’ Rights Act, MEES and Section 24.
Numbers confirmed? Let’s fund the deal.
Run the figures in our calculators, confirm the tax with your accountant, then tell us about the property and ownership structure. We’ll compare suitable finance routes for the purchase or refinance.