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New Commercial Stamp Duty Rates Announced

In today's Budget, the Government has announced plans to charge no SDLT (Stamp Duty Land Tax) on commercial properties being purchased for £150,000 or less.

The rates will come into force at midnight, and apply to commercial property purchases from Thursday 17th March 2016 onwards - though transitional arrangements will be in place for purchases that are under way.

The treasury estimates that these changes will reduce the tax bill on around 90% of commercial property purchases, whilst also bringing in an extra £500m a year for the treasury, from the 9% of transactions it estimates will be affected by the higher rates.

The new SDLT rate will be zero for commercial property purchases up to £150,000, with a duty of 2% payable on the next £100,000 of the property value, rising to 5% for the remainder of the value over £250,000. See our commercial stamp duty rate table for further details.

 

Stamp Duty on Commercial Properties

On Thursday 17th March 2016, new SDLT (Stamp Duty Land Tax) rates were introduced for commercial properties.

Commercial Stamp Duty Rates

Property or lease premium or transfer value SDLT rate
Up to £150,000 Zero
The next £100,000 (the portion from £150,001 to £250,000) 2%
The remaining amount (the portion above £250,000) 5%

Example

If you buy a commercial property for £280,000, the SDLT you owe is calculated as follows:

0% on the first £150,000 = £0
2% on the next £100,000 = £2,000
5% on the final £30,000 = £1,500
Total SDLT = £3,500

The Stamp Duty rates for residential properties are different.