Buy-to-let investors face the highest stamp duty costs of any property buyer. On top of the standard SDLT rates, you pay the 5% additional property surcharge (since 31 October 2024; 3% before) — a flat percentage applied to the entire purchase price. But there's a frequently overlooked opportunity: if your BTL property came with any moveable contents — carpets, curtains, white goods, furniture — you almost certainly overpaid SDLT on those items too.
This guide explains both opportunities: the surcharge, the chattels overpayment, and exactly how to claim each one back.
The double opportunity for landlords
When you buy a buy-to-let property, you're subject to two layers of SDLT cost that most owner-occupiers don't face:
Layer 1: The surcharge
Applied to the entire purchase price on any additional residential property above £40,000. This cannot be reclaimed unless specific conditions are met.
Layer 2: Chattels overpayment
SDLT paid on moveable items like carpets, curtains, and furniture. This can be reclaimed within 4 years, where the items were genuinely included in the sale.
Most landlords focus on the surcharge and overlook the chattels opportunity entirely. But for furnished or part-furnished BTL properties, the chattels refund can be a straightforward way to recover money you're legally entitled to.
The 5% surcharge explained
The additional property surcharge was introduced in April 2016 at 3% and increased to 5% on 31 October 2024 as part of the Autumn Budget. It applies to any purchase of an additional residential property above £40,000 — which includes virtually every BTL purchase.
Unlike the standard SDLT bands, the surcharge is added to every band, not just the top slice. This means it's calculated on the entire purchase price, making it a substantial additional cost.
Worked example: £400,000 BTL property (completion from 1 April 2025)
Standard SDLT: £10,000
5% surcharge (£400,000 × 5%): £20,000
Total SDLT paid: £30,000
The surcharge alone is twice the standard SDLT bill.
Can you reclaim the surcharge?
For most BTL investors, the surcharge is a permanent cost. You can only reclaim it if:
- You bought the property as a replacement main residence (not as a pure investment) and sold your previous main home within 3 years of the purchase
- You use HMRC's SDLT16 form to claim the refund within 12 months of selling the old property (or 12 months from the filing date, whichever is later)
If you bought purely as a buy-to-let investment and it was never intended to be your main residence, the surcharge cannot be reclaimed. However, you can still claim back overpaid SDLT on chattels — and that's where the real opportunity lies for most landlords.
For more detail on surcharge refunds, see our guide on second home stamp duty refunds.
Chattels in buy-to-let properties
BTL properties often come with more chattels than owner-occupied homes — especially if they're sold as furnished or part-furnished investments. Every moveable item included in the purchase price should have been deducted from the chargeable consideration before SDLT was calculated. If it wasn't, you've overpaid.
Furnished BTL properties
A fully furnished buy-to-let includes chattels like these. Here's what typically qualifies, at second-hand values:
- Furniture: sofa / soft furnishings £100-£250; double bed £60-£120
- Carpets throughout: £400-£800 for a whole house
- Curtains and blinds: £200-£400
- White goods: fridge/freezer £60-£100, washing machine £60-£100, dishwasher £50-£80
- Garden furniture: £40-£100
In total, a furnished BTL property typically has roughly £970-£1,950 in chattel value for a three-bed set, whatever the price of the property.
Worked example: £500,000 furnished BTL (completion from 1 April 2025)
Chattels valued at: £1,200
SDLT on £500,000 (with 5% surcharge): £40,000
SDLT on £498,800 (with 5% surcharge): £39,880
Potential refund: £120
Not a life-changing amount, but it's money you're legally owed — and claiming it takes less time than it took you to arrange your BTL mortgage.
Unfurnished BTL properties
Even unfurnished BTL properties usually include some chattels — carpets are the most common, followed by curtains or blinds, white goods, and light fittings. A typical unfurnished BTL might have £770-£1,480 in chattel value (carpets, curtains and white goods from the ranges above). The SDLT saving is smaller, but it's still worth checking.
HMO and multi-let properties
Houses in multiple occupation (HMOs) and multi-let properties often have more chattels because each room is furnished separately. A 6-bed HMO with furnished rooms, a communal kitchen, and shared living areas has a double bed in each furnished room (£60-£120 each), so six beds add £360-£720 to the other items. The value of each item stays the same.
Portfolio landlords: check every purchase
If you own multiple buy-to-let properties, each purchase is a separate SDLT transaction with its own 4-year claim window. This means you should review every BTL purchase you've made in the last 4 years.
A portfolio landlord who bought 5 properties in the last 4 years — each with £970-£1,950 in chattels — could be looking at a combined refund of up to about £975 (at the 10% combined marginal rate with the 5% surcharge, rates from 1 April 2025). Each claim is independent, so even if one property has a small chattel value, the total across your portfolio can be significant.
Portfolio tip
Start with your highest-value and most recently purchased properties. The higher the purchase price, the higher the marginal SDLT rate, and the more each pound of chattel deduction is worth. And the more recently you purchased, the more time you have before the 4-year deadline.
Valuations for BTL chattels
HMRC expects chattel valuations to be based on second-hand values — what the items would fetch if sold on the open market in their current condition. For rental properties, this means accounting for wear and tear, which is typically significant.
Here are some practical guidelines for valuing BTL chattels:
- Furniture packages: second-hand values are around £100-£250 for a sofa and £60-£120 for a double bed, depending on age and condition
- White goods: rental-grade appliances depreciate quickly. Second-hand values are around £60-£100 for a fridge/freezer, £60-£100 for a washing machine and £50-£80 for a dishwasher
- Carpets: rental-grade carpets depreciate faster than premium residential ones. Around £400-£800 for a whole house, adjusted for age
- Support your valuations with comparable prices from online marketplaces (eBay, Facebook Marketplace, Gumtree). HMRC may query valuations that appear inflated.
How to claim
The claiming process for BTL chattels refunds is the same as for any other property:
For portfolio landlords
If you're claiming for multiple properties, a claims firm can handle all claims simultaneously, often at a reduced fee per property. This is typically more efficient than submitting individual claims yourself.
Tax deductibility
One additional consideration for landlords: the SDLT refund itself is not taxable income. You originally paid SDLT as part of the property acquisition cost, and the refund simply corrects an overpayment. It does not need to be declared as rental income.
However, if you previously claimed SDLT as an allowable expense against Capital Gains Tax (as part of your acquisition cost), a refund would reduce that allowable cost. Keep records for your accountant.
Check your BTL refund
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