Stamp duty rates for Limited Companies

Home » Stamp duty rates for Limited Companies

How much is the Stamp Duty Land Tax for a limited company?

Land and property purchases over £40,000 are subject to Stamp Duty Land Tax (SDLT) in England and Northern Ireland. Property and land sales in Scotland and Wales are subject to different taxes.

In the event of a property being purchased over £40,000 the SDLT rate will be 5% above the standard rate and non-resident companies will pay a further 2% surcharge.

SDLT Rates for residential properties purchased in England and Northern Ireland (Limited Companies)

The higher SDLT rate will apply to any property being purchased by a limited company. Purchases of caravans, mobile homes, and houseboats under £40,000 are not subject to these rates.

To find an answer to your specific situation, please read the rest of this article if you are considering purchasing a property through a limited company.

Number of residential properties owned before purchase:	Resident limited company	Non-resident controlled limited company
Property or lease premium cost or transfer value:
Up to £40,000 only	0%	0%
Up to £250,000 (where cost greater than £40000)	5%	7%
The next £675,000 (the portion from £250,001 to £925,000)	10*	12%*
The next £575,000 (the portion from £925,001 to £1.5 million)	15%*	17%*
The remaining amount (the portion above £1.5 million)	17%	19%

There are some transactions that are not subject to the higher rate of Stamp Duty:

In this case, the property has a value of less than £40,000
Among the property’s features are some residential and some non-residential elements (for example, a shop with a flat above).

*Any purchase over £500,000 is subject to a rate of 17% (19% for companies owned by non-residents) if it is not used as part of a property rental business.

Land Transaction Tax Rates for residential properties in Scotland and Wales

Please refer to the following resources to find out more about Scottish and Welsh property tax rates.

Scotland – Land and Buildings Transaction Tax – https://revenue.scot/taxes/land-buildings-transaction-tax

Wales – Land Transaction Tax – https://gov.wales/land-transaction-tax-calculator

If you still aren’t sure what to do after reading this guide, don’t assume anything, but please get in touch with us on 0800 907 8633, via admin@uklandlordtax.co.uk or via our online contact form to verify and confirm your SDLT status.

DISCLAIMER
© Thandi Nicholls Ltd 2024 All Rights Reserved – The above articles are provided for guidance only and may not cover your personal circumstances so you should not rely on them. It is important that you seek appropriate professional advice which takes into account your personal circumstances where you can provide the full facts of the case and all documents related to your case. Thandi Nicholls Ltd t/a uklandlordtax.co.uk cannot be held responsible for the consequences of any action or the consequences of deciding not to act.

Stamp duty rates for Limited Companies

How much is the Stamp Duty Land Tax for a limited company?

SDLT Rates for residential properties purchased in England and Northern Ireland (Limited Companies)

Land Transaction Tax Rates for residential properties in Scotland and Wales

Do you have a question for our landlord tax experts?

UK Landlord Tax