The Government announced changes to the commercial Stamp Duty regime during the 2016 Budget.
The Chancellor said it followed the success of Stamp Duty changes announced in a previous budget for people buying homes.
If you are in the process of buying a commercial property, your Solicitor will work out the SDLT payable. HMRC also has an online calculator to help you work out how much you will have to pay.
The new rates are set out below:
Zero - Up to £150,000
2% - £125,001 to £250,000
5% - £250,001 to £925,000
There is also a new 2% rate for high-value leases with net present value above £5m
This compares with the old ‘flat’ rates which applied to the whole purchase price and which are set out below:
Zero - Up to £150,000
1% - £150,001 to £250,000
3% - £250,001 to £500,000
4% - £500,001+
For example, a buyer who purchases a qualifying commercial property for £200,000 and completes on or before 16th March 2016 will pay £2,000 in stamp duty. The same purchase that completes from 17th March will result in a SDLT cost of £1,000.
Commercial Conveyancing Solicitor, Luke Hewitt, said “The changes, although rather sudden, are welcomed as the system has been in need of reform for some time. The previous SDLT bands were rigid & did not reflect the upwards movement of average property prices.”
To arrange a discussion about commercial property, please get in touch with Luke Hewitt on 01625 523988 or mail@JBGass.com