Commercial stamp duty (SDLT) calculator
Estimate the banded SDLT due on a freehold non residential purchase in England and Northern Ireland, with the effective rate and a band breakdown.
Your estimate
Illustrative only. Not a quote or advice. Not an offer of finance.
How the commercial stamp duty calculator works
SDLT on a freehold non residential property is charged in slices, so each part of the price is taxed at its own rate rather than the whole price at a single rate. The slice up to 150,000 pounds is free of charge. The slice from 150,001 to 250,000 pounds is charged at 2 percent. The slice above 250,000 pounds is charged at 5 percent. We add the three bands to get the total SDLT due, then divide by the price to show the effective rate.
The formula is band one equals zero. Band two equals 2 percent of the amount between 150,000 and 250,000 pounds. Band three equals 5 percent of the amount above 250,000 pounds. Total SDLT equals band two plus band three. Effective rate equals total SDLT divided by price multiplied by one hundred.
An important note on jurisdiction
These bands apply to England and Northern Ireland only. Scotland uses Land and Buildings Transaction Tax, or LBTT, and Wales uses Land Transaction Tax, or LTT, each with different non residential thresholds and rates. The figures here are a guide for budgeting and should be confirmed with a solicitor, who will also handle reliefs, leasehold premiums and any VAT position. Once you have the tax budgeted, size the deposit and monthly cost with our commercial mortgage calculator.
Worked example
On a 1 million pound warehouse, the first 150,000 pounds is free, the next 100,000 pounds is taxed at 2 percent which is 2,000 pounds, and the remaining 750,000 pounds is taxed at 5 percent which is 37,500 pounds. The total SDLT is 39,500 pounds, an effective rate of 3.95 percent. We always tell buyers to set this cash aside alongside the deposit and confirm it with their solicitor before exchange.
Commercial stamp duty calculator: common questions
How is stamp duty calculated on a commercial property?
On a freehold non residential purchase in England and Northern Ireland, SDLT is banded. There is no charge on the slice up to 150,000 pounds, 2 percent on the slice from 150,001 to 250,000 pounds, and 5 percent on the slice above 250,000 pounds. The calculator adds the bands so each slice is taxed at its own rate.
Does commercial SDLT apply across the whole UK?
No. SDLT applies in England and Northern Ireland only. Scotland uses Land and Buildings Transaction Tax and Wales uses Land Transaction Tax, both with their own non residential bands and thresholds. If your warehouse is in Scotland or Wales the figure here will not match, so always confirm the local position with your solicitor.
Can stamp duty be added to a commercial mortgage?
Lenders fund against the property value, not the tax, so SDLT normally has to come from your own cash alongside the deposit and fees. It is worth budgeting for it early, because on a larger warehouse the 5 percent band makes it a real number. Use the figure here as a guide and confirm the exact liability with your solicitor before exchange.
Buying a commercial unit?
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