Non-residential SDLT bands
| Portion of consideration | Rate |
|---|---|
| Up to £150,000 | 0% |
| Over £150,000 to £250,000 | 2% |
| Over £250,000 | 5% |
On a straightforward £300,000 commercial freehold purchase, these bands produce £4,500: £2,000 on the middle slice and £2,500 on the top slice. This illustration assumes the stated amount is the correct chargeable consideration.
What counts as mixed use?
A property with residential and non-residential elements may fall within the mixed-use rules. An example is a shop with a flat. Classification is a factual and legal question; a room used as an office in an otherwise residential home does not automatically establish mixed-use treatment.
The land included in the transaction matters too. Do not classify a house with grounds as commercial just because it includes a large area of land. Ask the conveyancer to assess the actual use and relevant definitions.
Commercial leases can have two tax elements
A new non-residential lease can involve SDLT on a premium and on the net present value of rent. Those elements are calculated separately. Rent reviews, lease length and linked arrangements may affect the rent calculation.
The residential calculator on this site does not accept those inputs and should not be used for a complete commercial lease estimate. HMRC provides an official tool and detailed guidance for these transactions.
Other points to check before budgeting
Confirm whether VAT is included in chargeable consideration, whether transactions are linked and whether the purchase involves several dwellings. Companies buying residential property do not automatically use non-residential rates simply because the buyer is a business.
Scotland and Wales have their own non-residential LBTT and LTT schedules. Use the relevant authority’s calculator and obtain a transaction-specific figure before committing to a purchase. This page is a guide, not a commercial tax calculator.
RESEARCH & CORRECTIONS
Sources and review
Researched and maintained by StampDutyCal. Checked on against the official sources below. This is our own research, not an independent professional tax review. We update the website when rules change.