Stamp Duty Land Tax
3. Non-residential and mixed use land and property rates
You pay SDLT on increasing portions of the property price (or ‘consideration’) when you pay £150,000 or more for non-residential or mixed-use land or property.
You must still send an SDLT return for most transactions under £150,000.
Non-residential property includes:
- commercial property, eg shops or offices
- agricultural land
- any other land or property which is not used as a residence
- 6 or more residential properties bought in a single transaction
A ‘mixed use’ property is one that has both residential and non-residential elements, eg 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 use 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.
The net present value (NPV) is based on the total rent over the life of the lease. You don’t 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.
Using previous SDLT rates
You may qualify for previous SDLT rates if you exchanged contracts before 17 March 2016 but completed on or after that date.
If you qualify for the previous rates, you can choose to pay SDLT using the current or previous rates.
Use HMRC’s SDLT calculator to work out if you qualify and how much you’ll pay using both rates.
Enter the figure for the rate you choose in your SDLT return.