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Stamp duty calculator Stamp duty calculator

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Stamp Duty Calculator

Calculate the Stamp Duty payable on a residential purchase in England, Northern Ireland or Wales
Stamp Duty to Pay
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What is Commercial Stamp Duty?

Stamp Duty Land Tax (SDLT), often known as commercial stamp duty, is a tax imposed on the purchases of commercial (non- residential) properties, such as office buildings, retail spaces, or industrial units. It is typically calculated as a percentage of the property's value and is paid by the buyer during the purchase process, with the specific rates and thresholds for stamp duty decided by HMRC. SDLT applies to leases and freehold property sales and is a significant cost to consider in commercial real estate transactions.

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What are the current rates for freehold commercial stamp duty in England and Northern Ireland?

Freehold Commercial Stamp Duty rates are based upon property prices paid. SDLT is charged on the price paid for the property including VAT. No stamp duty is payable on a commercial property where the price paid is below £150,000.

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

What are the current rates for leasehold commercial stamp duty in England and Northern Ireland?

Leasehold Commercial Stamp Duty is slightly different from freehold commercial SDLT. You pay the Stamp Duty based on the lease premium (purchase price of the lease) and the net present value (the annual rent value you’ll pay). The price of a leasehold SDLT can also be affected by the length of the lease too.

NPV of rent payable Leasehold commercial SDLT rate
Up to £150,000 0%
Between £150,001 and £5,000,000 1%
Above £5,000,000 2%

Are Commercial and Residential Stamp Duty the Same?

Commercial stamp duty and residential stamp duty differ significantly in their rates and application:

  1. Residential property stamp duty rates are generally higher, particularly for second homes or buy-to-let properties where an additional surcharge is applied.
  2. Commercial stamp duty rates are simpler due to fewer tiers and lower percentages applied to portions over £250,000.
Another major distinction is that mixed-use properties are subject to commercial stamp duty rates, avoiding the higher taxes associated with residential purchases. Understanding this distinction can make a significant financial impact-especially for property investors working with mixed-use premises.

 

How Long Do You Have to Pay Stamp Duty on a Commercial Property?

Once you've completed a commercial property purchase, stamp duty must be paid within 14 days in England and Northern Ireland. This timeline has been tightened in recent years, so it's crucial to plan early to avoid penalties.

The responsibility for filing the required Stamp Duty Land Tax (SDLT) return and making the payment usually lies with your solicitor or conveyancer. However, as the property owner, it's your responsibility to ensure the payment is made on time.

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