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Commercial Stamp Duty Calculator

Calculate commercial stamp duty (SDLT) for UK property purchases with Cushman & Wakefield's free calculator. Covers England, Scotland, Wales & NI

Are you purchasing a commercial property in the UK? If so, understanding your stamp duty requirements is a crucial step in the process. Stamp Duty Land Tax (SDLT) for commercial properties can significantly impact your overall purchasing costs. Cushman & Wakefield's Commercial Stamp Duty Calculator is here to simplify the calculation process, ensuring you have a clear picture of your financial obligations.

What Is Commercial Stamp Duty and Why Does It Matter?

Commercial Stamp Duty Land Tax (SDLT) is a tax you pay to HM Revenue & Customs (HMRC) when purchasing non-residential property or land in England and Northern Ireland. This applies whether you're a first-time commercial buyer or adding to your property portfolio.

Unlike residential SDLT, commercial stamp duty applies to properties like offices, factories, warehouses, or land that is not used for permanent dwelling. The tax ensures that all property transactions are legally recognised while helping fund public services.

For investors and capital markets professionals, understanding SDLT is critical to accurately structuring deals, forecasting returns, and ensuring compliance across portfolios. Failing to account for SDLT costs could lead to unexpected financial surprises.

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*This caculator estimate includes SDLT and standard UK commercial real estate transaction costs, comprising 1% agency fees (plus 20% VAT) and 0.5% legal fees (plus 20% VAT). This results in an additional effective cost of approximately 1.80% on top of the SDLT charge.

Commercial Stamp Duty Rates 2025

Stamp duty liability on commercial property depends on several factors, including the location of the property and its purchase price. Below is a detailed breakdown of rates across the UK.

England and Northern Ireland SDLT Rates

Property value	Freehold commercial SDLT rate
Up to £150,000	0%
Between £150,001 and £250,000	2%
Above £250,001	5%

Example

For a commercial property purchased in England for £320,000:

0% on the first £150,000 = £0
2% on the next £100,000 (£150,001 - £250,000) = £2,000
5% on the remaining £70,000 (£250,001 - £320,000) = £3,500

Total SDLT: £5,500

What Qualifies as Commercial Property for Stamp Duty?

Types of Qualifying Properties

Office buildings and business premises
Retail units and shops
Warehouses and industrial units
Agricultural land and forestry
Mixed-use properties (e.g., a shop with a flat above)
Residential properties with six or more units in a single transaction
Land for development

Excluded Properties

Purely residential properties
Caravans and houseboats

Understanding property classification ensures correct SDLT rates are applied, so always confirm the intended property use during calculations.

Leasehold vs Freehold Commercial Stamp Duty

Freehold Commercial Property

Stamp duty for freehold purchases is straightforward, calculated directly using the rate bands provided.

Leasehold Commercial Property

Leasehold transactions can require more complex calculations based on:

Premium (purchase price)
Net Present Value (NPV) of rent over the term of the lease

For instance:

If a lease premium is £200,000, standard rates apply to the premium.
NPV calculations incorporate the total rent payable within the lease period when exceeding applicable thresholds.

Example tools within Cushman & Wakefield's commercial stamp duty calculator help simplify dual calculations to avoid underpays.

When and How to Pay Commercial Stamp Duty

Deadlines and Process

30-day Deadline: Payments must be made within 30 days of the completion date. For SDLT in England and Northern Ireland, this is longer than the 14-day residential requirement.
Who Handles Payment? Solicitors often manage payments on your behalf, ensuring accuracy.
Consequences for Delay: Late payments risk penalties and interest charges. To avoid this, submit SDLT returns promptly using HMRC-approved channels.

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