Stamp duty tax rates vary in England and Northern Ireland, Scotland, and Wales. This article focuses on UK stamp duty rates for non-residential properties, which differ from residential investments. It also features SDLT calculator for companies and individual property owners.
Quick Introduction to Stamp Duty
England and Northern Ireland’s stamp duty is called Stamp Duty Land Tax (SDLT), Scotland has Land and Buildings Transaction Tax (LBTT), and Wales the Land Transaction Tax (LTT), all of which are simply referred to as stamp duty land tax, SDLT, or merely stamp duty.
All UK property buyers are subject to stamp duty except when they fall under the tax-free threshold or are eligible for exemptions. SDLT calculator UK for residential and non-residential properties are different, as their rates differ. Users must also be wary that they use the right stamp duty land tax calculator UK according to location.
Read on for more information about stamp duty land tax calculator non residential properties. Check out our comprehensive guide on residential property stamp duty tax, too.
What Are Non-Residential Properties?
To use the stamp duty land tax calculator 2024 for companies, the property must be considered non-residential as per the following criteria:
- Commercial properties (e.g., shops or offices)
- Hospitals or hospices
- Correctional facilities
- Hotels or inns
- Uninhabitable properties
- Forested areas
- Student halls of residence
- Residential accommodations for children
- Bulk purchase of residential properties
- Agricultural land within a working farm or for agricultural use
- Care facilities for individuals with age, disability, addiction, or mental health needs
- Other non-residential land or property
Many investors choose non-residential properties, as tenants shoulder the upkeep responsibilities, which is not the case with a residential buy-to-let dwelling. Taxpayers can also only directly invest their pension into commercial property.
SDLT Calculator HMRC
HMRC offers the most all-inclusive stamp duty land tax calculator UK. Check the UK government site to start the calculation. The tool looks at all factors to determine the tax bill, including whether the property is freehold (paid) or leasehold (under mortgage), purchased by a UK resident or not, mortgage calculator, and more.
However, it is best for buyers to use a more customised stamp duty land tax calculator according to the type of property they purchase. To have a more thorough idea of how much SDLT to pay, working it out with a tax advisor is most recommended.
Non-Residential Stamp Duty Rates for 2023/24
England and Northern Ireland’s stamp duty land tax rates are different for freehold and leasehold properties. For the sale or transfer of freehold properties, the rates are:
| Purchase Price | SDLT Rate |
|---|---|
|
Between £0 and £150,000 |
0% |
|
Between £150,001 and £250,000 |
2% |
|
More than £250,001 |
5% |
On the other hand, the SDLT rates for leasehold properties are as follows:
| Purchase Price | SDLT Rate |
|---|---|
|
Between £0 and £150,000 |
0% |
|
Between £150,001 and £5,000,000 |
1% |
|
More than £5,000,001 |
2% |
Scotland’s land and buildings transaction tax rates for a non-residential property are as follows:
| Purchase Price | LBTT Rate |
|---|---|
|
Between £0 and £150,000 |
0% |
|
Between £150,001 and £250,000 |
1% |
|
More than £250,000 |
5% |
Wales’ land transaction tax rates are currently set at:
| Purchase Price | LTT Rate |
|---|---|
|
Between £0 and £225,000 |
0% |
|
Between £225,001 and £250,000 |
1% |
|
Between £250,0001 and £1,000,000 |
5% |
|
More than £1,000,001 |
6% |
A 2 per cent surcharge is levied on foreign non-residential property buyers.
What Stamp Duty Tax will I have to pay?
Are you a first time buyer? | |
Is this a second property? |
Frequently Asked Questions
Buying a second home overseas will still be subject to UK stamp duty tax.
All UK residents will need to pay taxes on their worldwide income, including those that they generate from overseas properties.
Non-UK residents can buy UK property without having a visa. Although moving to the UK first before buying a property will allow them to save a 2 per cent surcharge.
It is the buyer who pays stamp duty tax in the UK.
Why Legend Financial for Your Tax Returns?
After completing the property purchase, buyers will have fourteen days to settle their tax returns with HMRC. Using an SDLT calculator and determining the tax bill beforehand will save them time once they are due to file returns.
However, most SDLT calculators are generic, which may end up with the property owners paying more tax than they owe. Legend Financial is here for this matter. We have assisted a lot of UK landlords and property businesses in their stamp duty affairs for more than ten years. Reach us today for accurate stamp duty calculations and streamlined filing of your tax returns!
