Which rules apply depends on the price, how the property will be used and whether a relief is available. The company-purchase calculator estimates the 17% rate, the higher rates and the non-resident surcharge, but can't confirm whether a relief applies: check that with a tax adviser or HMRC's calculator.
Residential property: the higher rates
A company buying a home usually pays the higher rates for additional homes, even if it owns nothing else:
| Portion of the price | Rate |
|---|---|
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1,500,000 | 15% |
| Above £1,500,000 | 17% |
Example: a company buying a £300,000 home at the higher rates
£20,000
Show workings
- 5% on £125,000 (£0 – £125,000) = £6,250
- 7% on £125,000 (£125,000 – £250,000) = £8,750
- 10% on £50,000 (£250,000 – £300,000) = £5,000
The 17% flat rate
If a company buys a home for more than £500,000, a flat 17% rate on the whole price can apply instead. This is an alternative treatment, not an extra surcharge. Relief from it is often available, for example if the property is used in a genuine rental business, by a property developer or trader, or for certain employee accommodation. If the relief is withdrawn later, the tax can become payable.
A non-resident company may also pay the 2% non-resident surcharge.
Annual Tax on Enveloped Dwellings (ATED)
ATED is a separate yearly charge on some homes held by companies. It isn't part of stamp duty and isn't included in any purchase estimate.
Commercial property
Companies buying commercial, mixed-use property or land pay the same non-residential rates as individuals.