Guide summary

Check the property's address first, because its location decides which tax you pay
Send a return to claim a relief, even if no Stamp Duty Land Tax (SDLT) is due
File the SDLT return and pay within 14 days of the effective date, usually completion
Late SDLT return: £100 penalty up to 3 months late, then £200
Late SDLT payment: you pay interest from the day after the due date
You stay responsible for the deadline even if your solicitor files for you
Group relief can be clawed back if the property leaves the group within 3 years
Keep the filed return, proof of payment and SDLT5 certificate in case of a relief claim or enquiry

The tax on buying or leasing business premises depends on where the property is, not where you live or where your business is registered. England and Northern Ireland charge Stamp Duty Land Tax (SDLT), collected by HMRC, and the text below covers it. Scotland and Wales have their own taxes, set out in the boxes further down.

All three taxes are charged in slices. Each rate applies only to the part of the price that falls within its band, so the tax on a purchase is always less than the top rate applied to the whole price.

Check which rates apply to the property

Business premises pay the non-residential rates. These cover shops, offices, workshops, forests and farmland that is part of a working farm.

SDLT on mixed-use and multiple properties

How SDLT applies when buying property with both residential and commercial elements.

Mixed property: Has residential and non-residential elements
Example: Flat linked to a shop, surgery or office
Rates: Non-residential bands: 0%, 2%, 5%
Six or more dwellings: Non-residential rates apply

A mixed property has both residential and non-residential elements, such as a flat linked to a shop, surgery or office. SDLT on a mixed property is charged at the non-residential rates. Buying six or more residential properties in a single transaction is also treated as non-residential property.

A company that buys a home rather than business premises does not get these rates. Each nation charges companies extra on residential purchases, so check the residential rules before you commit.

Non-residential rates

You pay SDLT on the price, which is the money you pay plus the value of anything else you give for the property, such as taking on a debt. You must still send a return for most purchases that fall below the point where tax starts.

SDLT commercial property rates 2026/27

Stamp Duty Land Tax rates for non-residential and mixed-use property purchases.

Up to £150,000: 0% (nil rate band)
£150,001 to £250,000: 2%
Over £250,000: 5%

Non-residential property includes commercial and agricultural property. A mixed property, with both residential and non-residential elements, is charged at these rates too. The bands apply to freehold purchases and to lease premiums.

SDLT non-residential rates (opens in a new tab)

Leases

SDLT on commercial lease rent 2026/27

SDLT rates on the Net Present Value of rent for non-residential leases.

NPV up to £150,000: 0%
NPV £150,001 to £5,000,000: 1%
NPV over £5,000,000: 2%
Any lease premium: Standard non-residential rates apply

For a new lease, the premium and the rent are worked out separately, then combined. SDLT on the rent is charged on the net present value (NPV) of the rent over the lease term, which is the total rent expressed in today's money. The premium, if any, is charged at the non-residential rates for freehold sales.

SDLT on leases (opens in a new tab)

If you take over an existing lease by assignment, you pay SDLT only on the price you pay for it. HMRC's calculator works out the figure for a new lease.

Reliefs and exemptions

You must send a return to claim a relief, even if no tax is due.

SDLT exemptions and reliefs 2026/27

When SDLT is not payable or reduced, including group relief and charity relief.

Freehold exemption threshold: £40,000 - no SDLT if below
Lease exemption: No SDLT if premium under £40,000 AND annual rent under £1,000
Group relief: 0% on transfers between 75% group companies
Charity relief: 0% if purchased for charitable purposes
Transfers on divorce/dissolution: Exempt under court order
Compulsory purchase: Reduced rate or exempt

Group relief prevents SDLT on internal restructuring, but clawback provisions apply if the property leaves the group within 3 years. Multiple Dwellings Relief was abolished in June 2024 for most transactions.

File and pay

SDLT filing deadlines and penalties

Deadline for submitting SDLT returns and paying the tax, the late filing penalties, and interest on late payment.

Filing deadline: 14 days from the effective date (usually completion)
Payment deadline: 14 days from the effective date, the same as filing
Late filing (up to 3 months after the filing date): £100 penalty
Late filing (more than 3 months after the filing date): £200 penalty
Return not filed within 12 months of the filing date: Fixed penalty plus a tax-based penalty of up to 100% of the tax due
Late payment: Interest only, from the day after the payment was due
Late payment interest rate (from 9 January 2026): 7.75% a year (Bank of England base rate + 4%)

Your solicitor or conveyancer usually files the return and pays the tax on your behalf on the day of completion. If they do not, you can file the return and pay yourself.

Penalties and interest on a late Stamp Duty Land Tax return (opens in a new tab)

You stay responsible for the deadline even if your solicitor files for you.

Filing online gives you a Unique Transaction Reference Number, which you quote when paying, and an SDLT5 certificate. Your solicitor sends the certificate to HM Land Registry with the application to register the property. If you have no representative, you must file on a paper SDLT1 return by post.

Scotland

A separate tax with its own rates

Land and Buildings Transaction Tax (LBTT) replaced SDLT from 1 April 2015 and is collected by Revenue Scotland. Non-residential and mixed-use purchases pay nothing up to £150,000, 1% on the portion from £150,001 to £250,000 and 5% above £250,000.

For a new lease, any premium is taxed at those rates. The rent is taxed on its net present value: nothing up to £150,000, 1% from £150,001 to £2,000,000 and 2% above that. A lease whose rent has a net present value of £150,000 or less, with no chargeable premium, needs no return.

The buyer must make the return within 30 days beginning the day after the effective date. The Keeper of the Registers of Scotland will not accept an application to register the transaction until the return is made and the tax paid.

Non-residential LBTT rates (Revenue Scotland)

Wales

A separate tax with its own rates

Land Transaction Tax (LTT) replaced SDLT from 1 April 2018 and is collected by the Welsh Revenue Authority. A purchase that includes any non-residential land is a non-residential transaction, so mixed-use property pays these rates: nothing up to £225,000, 1% on the portion from £225,001 to £250,000, 5% from £250,001 to £1,000,000 and 6% above that.

The rent on a new lease is taxed on its net present value: nothing up to £225,000, 1% from £225,001 to £2,000,000 and 2% above that.

You must send the return and pay within 30 days of the day after completion, even if nothing is due, unless a specific exception applies. Solicitors and conveyancers file online. If you have none, ask the Welsh Revenue Authority for a paper return. Late filing or payment can bring penalties and interest.

Land Transaction Tax rates and bands (GOV.WALES)

Confirm where the property is

The location decides the tax, so check the address first. Use the Welsh Revenue Authority's postcode checker if the property is near the border.
Appoint a solicitor or conveyancer

Ask them to calculate the tax, file the return and pay it, and agree who covers the cost of the tax before completion.
Note the filing date

The deadline is 14 days from completion for SDLT and 30 days from the day after the effective date for the other two taxes. Make sure the money is with your solicitor in time.
Keep the return and certificate

Hold the filed return, proof of payment and the SDLT5 certificate where there is one, in case you need to claim a relief or answer an enquiry later.

How to send a Stamp Duty Land Tax return (opens in a new tab)

Legal basis

Primary legislation and key regulations

LTTADTWA 2017 Primary 2017 · Wales LBTTSA 2013 Primary 2013 · Scotland Finance Act 2003 Primary 2003 · UK-wide

Browse UK legislation legislation.gov.uk

Official guidance

Land Transaction Tax overview (GOV.WALES) (opens in a new tab)

www.gov.wales · Wales

How LBTT applies to leases (Revenue Scotland) (opens in a new tab)

revenue.scot · Scotland

Non-residential property (Revenue Scotland) (opens in a new tab)

revenue.scot · Scotland

File land transaction tax (opens in a new tab)

www.gov.wales · Wales

Ltt ldt tax penalties guide (opens in a new tab)

www.gov.wales · Wales

Lbtt penalties submitting or paying late (opens in a new tab)

revenue.scot · Scotland

Rates of stamp duty land tax for non uk residents (opens in a new tab)

HMRC · England and Northern Ireland

Stamp duty land tax buying an additional residential property (opens in a new tab)

HMRC · England and Northern Ireland

Calculate LTT (Welsh Revenue Authority) (opens in a new tab)

www.gov.wales · Wales

Calculate SDLT (opens in a new tab)

HMRC · England and Northern Ireland

LBTT reliefs (Revenue Scotland) (opens in a new tab)

revenue.scot · Scotland

LTT rates and bands - GOV.WALES (opens in a new tab)

www.gov.wales · Wales

Penalties and interest on a late Stamp Duty Land Tax return (opens in a new tab)

HMRC · England and Northern Ireland

GOV.UK, SDLT non-residential and mixed rates (opens in a new tab)

GOV.UK · England and Northern Ireland

Understand property transaction taxes

Check which rates apply to the property

Non-residential rates

Leases

Reliefs and exemptions

File and pay

Confirm where the property is

Appoint a solicitor or conveyancer

Note the filing date

Keep the return and certificate

Legal basis

Official guidance

Next steps

Growing your business

Start importing goods to the UK

Transfer ownership of your business

Related guides in Tax & Finance

Check a commercial lease before you sign

Register a lease with HM Land Registry

SDLT reliefs for corporate property transactions

Pay Stamp Duty Land Tax (SDLT)

Land Transaction Tax in Wales