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 ‘consideration’) when you pay £150,000 or more for non-residential or mixed (also known as ‘mixed use’) land or property.
You must still send an SDLT return for most transactions under £150,000.
Non-residential property includes:
- commercial property, for example shops or offices
- property that isn’t suitable to be lived in
- forests
- agricultural land that’s part of a working farm or used for agricultural reasons
- any other land or property that is not part of a dwelling’s garden or grounds
- 6 or more residential properties bought in a single transaction
You pay residential SDLT rates on agricultural land if it’s sold as part of the garden or grounds of a dwelling, for example a cottage with fields.
A ‘mixed’ property is one that has both residential and non-residential elements, for example a flat connected to a shop, doctor’s surgery or office.
Use the SDLT calculator to work out how much tax you’ll pay.
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
When you buy a new non-residential or mixed leasehold you pay SDLT on both the:
- purchase price of the lease (the ‘lease premium’) using the rates above
- value of the annual rent you pay (the ‘net present value’)
These are calculated separately then added together.
If you buy an existing (‘assigned’) lease, you only pay SDLT on the lease price (or ‘consideration’).
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 £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% |
How much you’ll pay
You can work out how much SDLT you’ll pay for your non-residential lease using HM Revenue and Customs’ (HMRC):
You may pay a higher rate of SDLT for multiple purchases or transfers from the same seller.