SDLT on Commercial Properties

Cannon Chambers offers support and guidance in reclaiming overpaid SDLT on commercial properties and leases.

Stamp Duty Land Tax is payable on commercial property purchases and leases. Calculating SDLT on commercial leases can be extremely complex, often leading to overpayment of the tax. The reclaim process in such cases can also be complicated and time-consuming.

At Cannon Chambers we can offer you a tax barrister who can supply long-standing expertise in all areas of SDLT, enabling them to advise on legitimate savings and provide an independent review of any SDLT avoidance schemes.

Cannon Chambers offers support and guidance in reclaiming overpaid SDLT from HMRC, as well as managing all correspondence in HMRC investigations for SDLT evasion and avoidance, and processing appeals against HMRC. Our expert SDLT barrister has an excellent track record of successfully representing private and corporate clients in tax tribunals and the courts. For more information, contact Cannon Chambers here.

What is the Stamp Duty on a Commercial Property?

Stamp Duty is a tax that applies to all commercial property transactions over £150,000 – when either purchasing or renting – involving land and properties throughout England and Northern Ireland.

The tax on commercial purchases is calculated on each slide of the purchase price on a sliding scale:

  • Up to £150,000: no SDLT payable
  • £150,001 to £250,000: SDLT rate of 2%
  • Above £250,000: SDLT rate of 5%

NB SDLT on property purchases is calculated on the cost of property including VAT.

Generally, the SDLT rates on rent for commercial leases are as follows in relation to the net present value of the rent:

  • Up to £150,000: no SDLT payable
  • £150,001 to £5,000,000: SDLT rate of 1%
  • Above £5,000,000: SDLT rate of 2%

NB these rates are affected by a number of factors including the length of lease, annual rent and premium paid on the lease.

Can You Avoid Paying Stamp Duty on a Commercial Property or Lease?

You can only avoid paying stamp duty on commercial properties or leases if they cost £150,000 or less. There are ways to mitigate the amount of SDLT payable on a property purchase or lease – these are often complex and may result in an HMRC investigation if you mistakenly, artificially or deliberately underpay SDLT. For this reason, it is recommended that you seek legal advice from an SDLT expert before attempting to reduce your exposure to stamp duty tax on commercial property.

How Can Cannon Chambers Help?

Cannon Chambers is a tax chamber delivering trusted tax advice and representation in disputes with HMRC. We work from anywhere, attending tribunal and court hearings by video or in person. We specialise in a number of tax-related expertise including stamp duty, financial crime, tax investigations and tax avoidance schemes. For more information, contact Cannon Chambers here.

Other SDLT Areas Cannon Chambers Can Advise On

Frequently Asked Questions about Stamp Duty on Commercial Properties

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