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Commercial Stamp Duty

Stamp Duty Land Tax Rates from December 4th 2014

You have to pay Stamp Duty Land Tax (SDLT) if you buy a property in the UK over a certain price. This
is charged on all purchases of houses, flats and other land and commercial buildings.

The SDLT rate depends on:

For example for residential property ONLY:

Under the new system on a purchase price of £260,000 the tax payable would be 0% on the first £125,000, 2% on the next £125,000 (£2,500) and 5% (£500) on the final £10,000 a total of £3,000 as opposed to £7,800.

On a purchase price of £550,000 0% on the first £125,000, 2% on the next £125,000 (£2,500) and 5% the remaining £300,000 (£1500) a total of £17,500 as opposed to £22,000.

On a purchase price of £1,000,000 0% on the first £125,000, 2% on the next £125,000 (£2,500) and 5% on £675,000 (£33,750) and 10% on the remaining £75,000 (£7,500) a total of £43,750 as opposed to £40,000.

SDLT may also be due if you lease a property.

SDLT is charged at different rates depending on the portion of the purchase price that falls into each rate
band.

i.e. Commercial property including farms & estates that are run as a business, i.e. Non-residential and mixed-use properties thresholds are as follows:

Purchase price/lease premium or transfer value
Up to £150,000 - annual rent is less than £1,000
Up to £150,000 - annual rent is £1,000 or more
Over £150,000 to £250,000
Over £250,000 to £500,000
Over £500,000

Stamp Duty
0%
1%
1%
3%
4%

 

Corporate bodies

SDLT is charged at 15% on residential dwellings costing more than £500,000 bought by bodies like:
• companies
• collective investment schemes

There are some exceptions. For example, you pay SDLT based on the new rates and bands where the
property is used for:
• a property rental business
• a property development or resale trade
• providing admission to visitors on a commercial basis

Residential leases
If your residential lease is for more than £125,000, you’ll pay 1% SDLT on the amount above the £125,000
threshold.