Commercial Stamp Duty Calculator UK | SDLT, LBTT & LTT
Buying or leasing a commercial property can quickly become confusing when you do not know which stamp duty rules apply.
Use this calculator to estimate commercial stamp duty for non-residential property purchases and leases across England, Northern Ireland, Scotland and Wales.
How It Works
Choose Location
Select England, Scotland, or Wales
Enter Details
Price, rent, or lease premium
Get Breakdown
Instant tax band calculation
How to use this commercial stamp duty calculator
Our tool makes it simple to estimate your property transaction tax. Choose the property location, select the transaction type, and enter the purchase price, premium, or lease rent details. Click Calculate to review your immediate tax breakdown.
What counts as commercial or non-residential property?
Non-residential property covers a wide range of buildings and land. Common examples include:
- Offices
- Shops and retail units
- Warehouses and factories
- Industrial units
- Agricultural land, forests, and woodland
- Hotels and restaurants
- Mixed-use buildings
- Six or more residential dwellings bought in one transaction
Commercial stamp duty rates by UK location
| UK location | Tax name | Main threshold | Top non-residential purchase rate | Best for |
|---|---|---|---|---|
| England and Northern Ireland | SDLT | £150,000 | 5% (over £250,000) | Commercial property buyer in England/NI |
| Scotland | LBTT | £150,000 | 5% (over £250,000) | Commercial property buyer in Scotland |
| Wales | LTT | £225,000 | 6% (over £1,000,000) | Commercial property buyer in Wales |
Freehold purchase, lease premium and new lease rent
Different transaction types are taxed differently:
- Freehold purchase: tax is based on the purchase price.
- Lease premium: tax is based on the premium or transfer value paid to secure the lease.
- New lease with rent: tax may apply to both the premium paid AND the net present value (NPV) of the rent over the lease term.
- Assigned existing lease: usually based on the consideration paid to take over the lease, not a new rent NPV calculation.
Why your commercial stamp duty estimate can change
In real transactions, the final figure can change. This often happens when VAT is added to the purchase price, leases include stepped rent or complex review clauses, transactions are linked with other purchases, a property is mixed-use, the buyer claims relief, or professional advisers classify the property differently.
Common reasons your final bill may differ
- Linked transactions
- Reliefs and exemptions
- VAT on premium or rent
- Complex lease terms
- Mixed-use classification disputes
- Group company transfers
- Freeport or Investment Zone relief
- Professional advice adjustments
Frequently asked questions
Quick answers to the most common commercial stamp duty questions for buyers, tenants, landlords and limited companies.
What is commercial stamp duty?
It is a tax paid when buying or leasing non-residential land or property in the UK. It is known as SDLT in England and Northern Ireland, LBTT in Scotland, and LTT in Wales.
Do I pay commercial stamp duty on property under £150,000?
In England, Northern Ireland, and Scotland, non-residential purchases up to £150,000 generally fall into the 0% band. However, Wales has a different threshold, 0% up to £225,000, and special rules may apply if transactions are linked.
Is mixed-use property charged at commercial rates?
Yes, property that incorporates both residential and non-residential elements, such as a shop with a flat above, is generally assessed using commercial non-residential rates, though classification can be fact-specific.
Do limited companies pay commercial stamp duty?
Yes, limited companies pay commercial stamp duty. A limited company property purchase for commercial use is normally based on the same non-residential bands, though residential company purchases can have different rules.
How is stamp duty calculated on a commercial lease?
For a new lease, stamp duty may be charged on the lease premium, using purchase bands, and on the NPV of the rent, using specific lease rent bands. These are calculated separately and added together.
What is NPV in a commercial lease?
NPV stands for Net Present Value. It is a calculation that takes the total rent payable over the term of the lease and discounts it to reflect the current value of money, usually using a standard 3.5% discount rate.
Does VAT affect commercial stamp duty?
Yes. If VAT is payable on the purchase price, premium, or rent, the stamp duty is typically calculated on the VAT-inclusive amount. You should check your transaction details carefully.
When do I pay SDLT after buying commercial property?
SDLT filing and payment is usually required within 14 days of the effective transaction date in England and Northern Ireland. Scotland, Revenue Scotland, and Wales, Welsh Revenue Authority, use their own tax authorities and may have different rules.
Can commercial stamp duty be reduced?
Possible reliefs include group relief, charities relief, Freeports, and Investment Zones relief. However, eligibility depends on strict rules and you should always seek professional advice.
Is this calculator a replacement for professional advice?
No. It is an estimate only. Always confirm the final amount with your solicitor, conveyancer, accountant or tax adviser.