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 3% above the standard rate and non-resident companies will pay a further 2% surcharge.
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) | 3% | 5% | ||||
The next £675,000 (the portion from £250,001 to £925,000) | 8%* | 10%* | ||||
The next £575,000 (the portion from £925,001 to £1.5 million) | 13%* | 15%* | ||||
The remaining amount (the portion above £1.5 million) | 15% | 17% |
There are some transactions that are not subject to the higher rate of Stamp Duty:
*Any purchase over £500,000 is subject to a rate of 15% (17% for non-resident companies) if it is not used as part of a property rental business.
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.
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