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Stamp Duty

Commerical Stamp Duty Calculator

Calculate how much stamp duty
you will pay:

Error: Purchase Price is required.

Stamp Duty: £0

Tax Band%Taxable SumTax
less than £150k0
£150k to £250k2
rest over £250k5

Effective Rate: 0%

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Changes to Stamp Duty tax rates in England were announced as part of the mini-budget in September 2022, among several significant adjustments to UK tax structures and charges.

However, non-residential property transactions and mixed-use purchases remain liable for the same Stamp Duty rates, and calculating the levy correctly is important.

Is Stamp Duty Payable on a Business Property or Buy-to-Let?

Stamp Duty is a property tax charged to the buyer and is payable on all property types if the sale value exceeds the threshold.

Non-residential property transactions include any sale comprising:

  • Commercial business premises.
  • Non-residential properties.
  • Agricultural land transaction tax
  • Blocks of six or more residential properties purchased together.
  • Land or property that is not a residential garden.
  • Mixed-use premises.
  • Buildings transaction tax

Purchases over the £150,000 threshold are liable for Stamp Duty, even if the property is partially residential, but another part falls into one of the above categories.

Stamp Duty applies regardless of whether the purchase is a new build, an existing property or a freehold or leasehold asset.

What is commercial stamp duty?

Commercial property stamp duty is a tax you pay when buying non-residential or mixed-use land or property in the UK, if the purchase price is £150,000 or more. This includes various types of properties such as commercial buildings, agricultural lands, and forests.

The goal of this tax is to contribute to public revenues while also managing the real estate market by taxing transactions.

For purchases less than £150,000, even though no tax might be due, an SDLT (Stamp Duty Land Tax) return must still be filed for most transactions. This ensures that all commercial property transactions are properly recorded and taxed according to their value.

Using tools like a commercial stamp duty calculator can help buyers understand how much they need to budget for this expense.

Understand your obligations with clarity: Commercial stamp duty affects all sizable non-residential property purchases.

What properties are considered non-residential?

Non-residential properties range widely from commercial buildings to agricultural land. They include offices, retail outlets, industrial units, and any property not designed for living such as forests and some types of recreational grounds.

These classifications are crucial for anyone using a nonresidential stamp duty calculator or needing to calculate stamp duty on residential property differently. Properties that can't be classified strictly as homes fall into this category.

A 'mixed' property stands out as it combines elements of both living spaces and non-residential areas. This might include a shop with an apartment above it. Identifying these types is vital for accurate calculations with tools like the commercial stamp duty calculator UK or when estimating stamp duty tax for non UK residents specifically in regions like London or NSW.

Knowing which category your property falls into helps streamline the process before moving onto figuring out transaction rates.

Using the RFB Commercial Stamp Duty Calculator

Input your transaction details into the RFB Commercial Stamp Duty Calculator for a quick calculation. It breaks down the costs and tax implications clearly, making it easier to understand what you owe and simplifying the calculating commercial stamp duty process.

How to use the calculator

Using the RFB Commercial Stamp Duty Calculator simplifies figuring out your tax obligations for commercial properties. This tool breaks down the costs associated with purchasing non-residential property, keeping you informed every step of the way.

  1. Start by accessing the RFB Commercial Stamp Duty Calculator online. You can easily find this on the website.
  2. Enter the price of the commercial property you're interested in or planning to buy. Ensure that this amount is accurate to get precise results.
  3. Choose the type of property transaction, whether it’s a freehold purchase or an existing leasehold property agreement. This detail significantly influences your stamp duty cost.
  4. If you are buying as a non-resident, select the appropriate option since non-residents pay stamp duty surcharge at different rates.
  5. Review the list of non - non-residential properties provided if unsure about your property's classification for commercial stamp duty purposes.
  6. Click on the calculate button to proceed. The calculator will then use the information provided to determine your applicable tax bands and percentages.
  7. Examine the results displayed on your screen. These include a breakdown of how much stamp duty you owe based on the current rates for freehold and leasehold transactions in England and Northern Ireland.
  8. For further understanding, look at how is stamp duty calculated NSW; though regional differences might apply, it gives insight into overall calculations in another jurisdiction.
  9. Should assistance be needed, users can find their nearest RFB office through links provided within the calculator tool itself for personalized help with their commercial property transactions.

This process not only clarifies what you'll owe but also points toward relief options and expert advice available should you have more specific needs or questions regarding your commercial stamp duty calculation.

Overview of results

The RFB Commercial Stamp Duty Calculator provides a detailed breakdown of the stamp duty payable on commercial properties in various regions, including UK and London. After entering the purchase price and selecting the applicable region, users instantly see tax bands and percentages that apply to their transaction.

This tool simplifies understanding how much needs to be paid for non-residential stamp duty.

Results from the calculator show clear distinctions between different tax bands, making it easier for users to grasp how the total payable amount is calculated. Whether dealing with a freehold or leasehold transaction, this feature assists buyers in budgeting accordingly for their commercial property investments.

The convenience of having such comprehensive insights at one's fingertips makes planning and decision-making far more straightforward for everyone involved in commercial real estate transactions.

Explanation of Land & Buildings Tax calculation

Calculating the Land & Buildings Tax, also known as Stamp Duty Land Tax (SDLT), involves understanding how different rates apply to portions of a property's price. For commercial properties or mixed land costing £150,000 and above, SDLT is charged on a sliding scale.

This means you pay no stamp duty on the initial £150,000 portion of the purchase price. The next £100,000 attracts a 2% rate, while any amount above £250,000 incurs a 5% charge.

Therefore, buying a commercial property for £275,000 results in an SDLT of £3,250.

For leasehold transactions in the non-residential sector, SDLT calculations become slightly more complex as they include both the lease premium and the net present value (NPV) of annual rent payable. Commercial stamp duty in Wales means that you need to pay land transaction tax instead of SDLT.

The HM Revenue and Customs (HMRC) offers specific calculators designed to simplify this process for buyers and investors. Using these tools effectively can help anyone understand their tax obligations without drowning in complicated formulas or legal terminology.

Rates for freehold and leasehold transactions

Calculating rates for freehold and leasehold transactions is straightforward with the right tools. Knight Frank provides a commercial stamp duty calculator that simplifies this process. For instance, buying a freehold commercial property price for £275,000 incurs SDLT of £3,250. This is broken down as follows: 0% on the first £150,000, 2% on the next £100,000, and 5% on the final £25,000. Additionally, when acquiring a new non-residential or mixed leasehold, SDLT applies to both the lease premium and the net present value of annual rent.

What Are the Stamp Duty Rates on Buy-to-Let Properties?

A buy-to-let is considered a non-residential property acquisition because the buyer does not intend to live in the accommodation as their primary residence.

Therefore, the non-residential Stamp Duty rates apply.

This rule also covers mixed-use properties. For example, an office with a flat above it or a residential property with multiple units will not be taxed as a residential home.

Stamp Duty Rates for Non-Residential or Mixed Use Properties

Current Stamp Duty rates for all commercial or non-residential buildings are as follows.

Purchase Value

Stamp Duty

Up to £150,000


£150,001 - £250,000


£250,001 and above


Commercial and non-residential Stamp Duty rates work on tiers, so the 2% band is only charged against the proportion of the value that falls between £150,000 and £250,000 and so on.

Example Non-Residential Stamp Duty Calculation

If a business or individual investor were to purchase a property for £500,000, the Stamp Duty calculation would be:

  • £0 - £150,000: zero Stamp Duty.
  • £150,000 - £250,000: 2% Stamp Duty of £2,000.
  • £250,000 - £500,000: 5% Stamp Duty of £12,500.
  • Total Stamp Duty payable is £14,500 or 2.9%.

Example Non-Residential Stamp Duty Calculation for a Leasehold Purchase

Leasehold purchases are calculated as the total lease premium paid plus the annual rent paid to the freehold owner.

The lease purchase cost is the lease premium, and the annual rent is the net present value.

Net present value is based on the total lifetime of the leasehold multiplied by the yearly rent, but Stamp Duty is only payable if the total is £150,000 or above.

Net Present Value

Stamp Duty Rate

Up to £150,000


£150,001 - £5 million


£5 million and above


When Does Commercial Stamp Duty Need to Be Paid to HMRC?

Commercial and non-residential property purchases have 30 days to remit the tax payment to HMRC, a slightly longer extension than for a residential transaction. The 30 days commence on the day the sale completes.

Most buyers will use a solicitor to manage the property deeds and financing, so they will organise the payment on your behalf to ensure you do not receive a penalty.

Stamp Duty is payable by all buyers, whether a company or an individual, a private investor or an overseas organisation.

Please send a message to Revolution Finance Brokers at any stage if you would like more information about non-residential Stamp Duty rates, or planning for your commercial property purchase.

When is commercial stamp duty payable?

Commercial stamp duty is due within 30 days following the completion of a transaction. This rule applies to all non-residential property purchases and lease agreements where there's a payment involved.

If you're using a commercial stamp duty calculator for London or any other area, it's crucial to factor in this timeframe to ensure that payment is made promptly. Missed or late payments can result in fines, making timely settlement essential for buyers and lessees.

For those purchasing non-residential properties or entering into new lease agreements, understanding the exact moment when this duty becomes payable helps avoid unexpected financial strains.

Whether you're a resident or a non-resident pondering over "do non residents pay stamp duty?" knowing your obligations ensures compliance with local tax laws and regulations concerning commercial transactions.

Relief options

Paying commercial stamp duty can be a big financial burden. Luckily, relief options are available to help reduce or even eliminate this cost. Here are several relief options you might find useful:

  1. Charitable Relief: If a charity buys property for use in its charitable work, it may not have to pay stamp duty. This can significantly lower costs for non-profit organizations.
  2. Group Relief: Companies that are part of the same group can transfer properties between each other without facing stamp duty charges. This is useful for restructuring within corporate groups.
  3. Reconstruction and Amalgamation Relief: Companies undergoing reconstruction or amalgamation could qualify for stamp duty relief if certain conditions are met, making it easier to merge or reorganize without additional costs.
  4. Reliefs for Certain Non-residential Properties: Some types of non-residential properties may qualify for reduced rates or exemptions, depending on their usage and the buyer's plans for them.
  5. First-time Buyers Relief: Though more common in residential purchases, some regions offer reliefs for first-time buyers of commercial properties as well. It’s worth checking local regulations.
  6. Multiple Dwellings Relief (MDR): If you're purchasing multiple dwellings, this relief could allow you to pay a reduced rate of stamp duty based on the average value per dwelling, rather than the total transaction value.

Each of these reliefs requires specific conditions to be met and understanding them can be challenging without expert advice available. Seeking professional guidance ensures you make the most out of any potential savings on your commercial stamp duty payments.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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