What is Stamp Duty for Limited Companies?

Stamp Duty Land Tax (SDLT) is a tax paid when purchasing property or land in England and Northern Ireland. For limited companies buying property, the rules are slightly different from individual buyers. Companies are generally subject to the higher rates of stamp duty, which includes a 3% surcharge on residential properties. This applies even if it's the company's first property purchase. The amount of stamp duty a limited company pays depends on various factors, including the property value, type (residential or non-residential), and whether it's an additional property for the company.

How to Use the Limited Company Stamp Duty Calculator

Step 1: Enter the Property Value

Input the full purchase price of the property in pounds sterling. This should be the agreed-upon price you're paying for the property, not including any additional costs or fees.

Step 2: Select the Property Type

Choose whether the property is "Residential" or "Non-Residential or Mixed Use". This is important as different rates apply to different property types.

Step 3: Indicate if it's an Additional Property

Select "Yes" if this is an additional property for the company, or "No" if it's the only property. For most limited companies, this will be "Yes" as they're typically subject to the higher rates.

Step 4: Specify if the Company is a First-Time Buyer

Although rare for companies, select "Yes" if the company qualifies as a first-time buyer, otherwise select "No". Most companies will select "No" here.

Step 5: Calculate the Stamp Duty

Click the "Calculate Stamp Duty" button. The calculator will process your inputs and display the results.

Step 6: Review the Results

The calculator will show you the total stamp duty payable and the effective tax rate. It will also provide a brief explanation of how the calculation was made based on your inputs.

By following these steps, you can quickly and accurately estimate the stamp duty a limited company would need to pay on a property purchase. Remember that while this calculator provides a good estimate, for precise figures and professional advice, always consult with a qualified tax advisor or solicitor.