Stamp Duty Land Tax
Rates for non-residential and mixed land and property
You pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price (or 鈥榗onsideration鈥�) when you pay 拢150,000 or more for non-residential or mixed (also known as 鈥榤ixed use鈥�) land or property.听
You must still send an SDLT return for most transactions under 拢150,000.
Non-residential property includes:
- commercial property, for example shops or offices
- property that is not suitable to be lived in and cannot be made suitable (for example, there is a high risk of structural collapse or the property is radioactive)
- forests
- agricultural land that鈥檚 part of a working farm or used for agricultural reasons
- any other land or property that is not part of a dwelling鈥檚 garden or grounds
- 6 or more residential properties bought in a single transaction
You pay residential SDLT rates on agricultural land if it鈥檚 sold as part of the garden or grounds of a dwelling, for example a cottage with fields.
A 鈥榤ixed鈥� property is one that has both residential and non-residential elements, for example a flat connected to a shop, doctor鈥檚 surgery or office.
Use the to work out how much tax you鈥檒l pay.
Freehold sales and transfers
You can also use this table to work out the SDLT rate for a lease premium.听
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to 拢150,000 | Zero |
| The next 拢100,000 (the portion from 拢150,001 to 拢250,000) | 2% |
| The remaining amount (the portion above 拢250,000) | 5% |
Example
If you buy a freehold commercial property for 拢275,000, the SDLT you owe is calculated as follows:
- 0% on the first 拢150,000 = 拢0
- 2% on the next 拢100,000 = 拢2,000
- 5% on the final 拢25,000 = 拢1,250
- Total SDLT = 拢3,250
New leasehold sales and transfers
When you buy a new non-residential or mixed leasehold you pay SDLT on both the:听
- purchase price of the lease (the 鈥榣ease premium鈥�) using the rates above
- value of the annual rent you pay (the 鈥榥et present value鈥�)听听
These are calculated separately then added together.
If you buy an existing (鈥榓ssigned鈥�) lease, you only pay SDLT on the lease price (or 鈥榗onsideration鈥�).
The net present value (NPV) is based on the total rent over the life of the lease. You do not pay SDLT on the rent if the NPV is less than 拢150,000.听
| Net present value of rent | SDLT rate |
|---|---|
| 拢0 to 拢150,000 | Zero |
| The portion from 拢150,001 to 拢5,000,000 | 1% |
| The portion above 拢5,000,000 | 2% |
How much you鈥檒l pay
You can work out how much SDLT you鈥檒l pay for your non-residential lease using HM Revenue and Customs鈥� (HMRC):
You may pay a higher rate of SDLT for multiple purchases or transfers from the same seller.