Commercial Stamp Duty Calculator 2025/26

What are the SDLT rates for commercial property?

Stamp Duty Land Tax on commercial (non-residential) property purchases in England and Northern Ireland is charged at 0% on the first £150,000, 2% on the portion between £150,001 and £250,000, and 5% on the portion above £250,000. These rates apply to freehold purchases and lease premiums. For a £450,000 commercial property, the total SDLT would be £12,000: £0 on the first £150,000, £2,000 on the next £100,000, and £10,000 on the remaining £200,000.

How is SDLT calculated on commercial leases?

Commercial leases attract SDLT on two elements: the lease premium (if any) and the net present value (NPV) of the total rent payable over the lease term. The premium is taxed at the standard commercial rates above. The NPV of rent is taxed at 0% on the first £150,000 and 1% on the portion above £150,000. The NPV calculation discounts future rent payments at a rate of 3.5% per year, which reduces the tax burden for longer leases compared to the simple total rent figure.

What counts as commercial property for SDLT purposes?

Commercial property includes offices, retail premises, warehouses, factories, agricultural land, forests, and any property that is not residential. Mixed-use properties (those with both residential and commercial elements, such as a flat above a shop) are also taxed at commercial rates, which are lower than residential rates. This makes mixed-use classification significant — if a property qualifies as mixed-use rather than purely residential, the SDLT can be substantially lower.

What are linked transactions?

Linked transactions are two or more property transactions between the same buyer and seller (or connected persons) that form part of a single arrangement. When transactions are linked, SDLT is calculated on the total consideration across all transactions, then divided proportionally. This can increase the total SDLT because the combined purchase price may push more of the consideration into higher rate bands. Linked transactions commonly arise in portfolio purchases and transactions between connected parties.

Can I claim multiple dwellings relief on mixed-use?

Multiple dwellings relief (MDR) was abolished for transactions completing on or after 1 June 2024. Prior to this, MDR allowed buyers of multiple residential properties in a single transaction to calculate SDLT based on the average price per dwelling, often resulting in significant tax savings. Properties exchanging after 1 June 2024 can no longer claim MDR, though transitional provisions apply to contracts exchanged before 6 March 2024.

When do I need to pay commercial SDLT?

SDLT on commercial property must be filed and paid within 14 days of completion. You submit an SDLT return to HMRC even if no tax is due (for transactions above the notification threshold of £40,000). Late filing attracts automatic penalties: £100 if up to 3 months late, £200 if more than 3 months late, plus additional tax-based penalties for returns more than 12 months overdue. Interest is also charged on late payment from the filing deadline.

Are there any SDLT reliefs for commercial property?

Several reliefs are available for commercial property transactions. Charities purchasing property for charitable purposes can claim relief. Group relief applies to transfers between companies in the same 75% group. Reconstruction and acquisition relief applies to certain company reorganisations. Certain transactions in disadvantaged areas may qualify for relief. Transfers to a partnership or from a partnership have special rules. Compulsory purchase orders can also attract SDLT relief. Each relief has specific conditions that must be met.