Considering SDLT on Auction Commercial Property

commercial property auction buyers guide

Find all the information you need to know about Stamp Duty Land Tax charged on commercial property at auction, including relief available on certain commercial property types.

SDLT (Stamp Duty Land Tax) Information for Auction Property Buyers

Stamp Duty Land Tax (SDLT) is charged on property and land transactions in the UK, where the value exceeds certain thresholds.

SDLT is payable on the purchase price but not on the buyers premium (if applicable).

The table below shows the rates of Stamp Duty Land Tax that apply on commercial properties:

Purchase price SDLT rate (includes first time buyers)
Up to £150,000 (if the property is let out and the annual rent is less than £1,000 ) Zero
Over £150,001 to £250,000 2.00%
The remaining amount over £250,000 5.00%

*Contains public sector information licensed under the Open Government Licence (Updated 08 February 2017)

It is important to take into consideration how much SDLT you will be paying when choosing a property, as a small difference in the property price and the duration of the lease granted, could make a big difference in the amount of SDLT payable.

SDLT is not payable in the following circumstances:

  • Commercial property that is left in a will or forms part of an estate.
  • Freehold transactions of less than £40,000

Am I Eligible for Any SDLT Reliefs?

Some transactions may qualify for relief, which can reduce the amount of tax payable. SDLT relief can be claimed online.

Please find below some of the commercial property and land transactions which will qualify for SDLT relief (this is not a definitive list):

SDLT Group Relief

SDLT is not payable when companies within the same group buy or sell property to/or from each other, within the following criteria. The following criteria must be met in order to qualify for the relief:

  • Both parties are companies
  • Both companies are members of the same group at the date of the transaction.

SDLT Charities Relief

Charities are able to claim SDLT relief from the point when they purchase property or land for charitable purposes. The relief can be discontinued within the three years of the transaction, if the property reverts from being used for a charitable purpose.

*Contains public sector information licensed under the Open Government Licence (Updated 08 February 2017)



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