New Commercial SDLT Rates Explained

March 17, 2016


Whilst conveyancing teams across the country have been gearing up to deal with the anticipated changes to Stamp Duty Land Tax (SDLT) on buy to lets, George Osborne announced a change to commercial SDLT rates on freehold purchases which took effect at midnight today (17th March).


The new rates provide for staging so that SDLT is charged differently on different parts of the purchase price, which is similar to how the residential SDLT charges are made.


The rates are as follows:

ConsiderationSDLT rate

Up to £150,000 Zero £150,001 to £250,000 2% on the portion over £150k £250,001 upwards

5% on the portion over £250k


So, where the purchase price is £350,000, the SDLT is calculated as follows (rounded up to the nearest whole £):


          £150,000 x 0% = £0

          £150,001 to £250,000 x 2% = £2,000.00

          £250,001-£350,000 x 5% = £5,000.00

            Total: £7,000.00


Under the old rates, the whole purchase price would have been charged at 3% and so producing a SDLT liability of £10,500.00. The old rates are given below for comparison.


ConsiderationSDLT rate

Up to £150,000 Zero £150,001 to £250,000 1% £250,001 upwards


Over £500,000 4%


George Osborne also added a further change to commercial SDLT by imposes a new 2% rate for high value leases having an NPV above £5m.

For further information please contact Richard Palmer on 01323 720142 or at