Stamp Duty Land Tax
You pay SDLT on the entire price (or ‘consideration’) when you pay £150,000 or more for non-residential or mixed-use land or property.
You must still send an SDLT return for transactions under £150,000.
Non-residential property includes:
Commercial property, e.g shops or offices agricultural land forests any other land or property which is not used as a residence 6 or more residential properties bought in a single transaction.
A ‘mixed use’ property is one that has both residential and non-residential elements, e.g. a flat connected to a shop, doctor’s surgery or office.
Use the Stamp Duty Land Tax calculator to work out how much tax you’ll pay.
(There’s a different calculator for leases.)
Freehold sales and transfers.
You can also use this table to work out the SDLT rate for a lease premium.
| 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 freehold commercial property for £275,000, 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 £25,000 = £1,250
- Total SDLT = £3,250
New Leasehold sales and transfers
The net present value (NPV) is based on the total rent over the life the lease. You don’t pay SDLT on the rent if the NPV is less than £150,000.
| Net present value of rent |
SDLT rate |
| £0 to £150,000 |
Zero |
| The portion from £150,001 to £5,000,000 |
1% |
| The portion above £5,000,000 |
2% |