Stamp Duty for limited companies

Simon Misiewicz

Simon Misiewicz

Expat & Property Tax Specialist

15th June 2022

Stamp Duty for limited companies

Stamp Duty for limited companies is a complex area that UK landlords must navigate with care.

Stamp Duty Land Tax (SDLT) is charged 15% on residential properties costing £500,000 and over.

HMRC defines these non-natural persons’ as companies, partnerships and collective investment schemes.

The 15% SDLT rate does not apply to property bought by a company acting as a settlement trustee.

This SDLT rate is also exempt for companies that purchase properties for a property rental business, property developers and traders, property occupied by employees, a housing co-operative, farmhouses, and financial institutions buying property in the course of lending.

These exclusions are subject to specific conditions.

There is a 3% surcharge on residential properties bought by companies.

What are the basics of Stamp Duty for limited companies?

As property accountants serving thousands of UK landlords that purchase buy-to-let properties, we know that SDLT can be an uncertain topic.

SDLT is a tax charged on the purchase or acquisition of property or land over a certain price in England and Northern Ireland.

Stamp Duty tax works differently if the property or land is in Wales or Scotland.

Where a property is a second property and costs more than £40,000, the SDLT rate will be 3% above the standard rates.

Non-resident companies or companies controlled by non-residents pay a 2% surcharge on all properties over the £40,000 purchase threshold.

If the company is purchasing an additional property, higher rates of SDLT apply.

Landlords will pay an additional 3% above the standard SDLT rates where they already own a property.

Stamp Duty does not apply to purchases under £40,000 or caravans, motorhomes and houseboats.

A limited company will pay the 3% Stamp duty surcharge on any residential property over £40,000.

This applies irrespective of whether or not it is the first property purchased by the company.

All non-residential and mixed-use properties purchased by a limited company pay standard SDLT rates.

There is no 3% Stamp Duty surcharge on non-residential properties for limited companies.

Do limited companies pay a surcharge on BTL properties?

The 3% SDLT surcharge was announced in 2015 and implemented in April 2016.

The 3% Stamp Duty automatically applies to any limited company purchasing a property.

This was designed to target purchasers of second homes and property investors.

What Stamp Duty rates do limited companies pay?

From 01 October 2021, limited companies, second homeowners and buy-to-let investors all pay a 3% Stamp Duty surcharge on top of residential SDLT rates.

The SDLT rate for properties up to £125,000 is 3%.

The SDLT rate for properties up to £250,000 is 5%.

The SDLT rate for properties up to £925,000 is 8%.

The SDLT rate for properties up to £1.5m is 13%.

The SDLT rate for properties over £15.5m is 15%.

It is also worth reviewing the higher rates of SDLT.

Here are Stamp Duty rates for property investors.

Do limited companies pay less Stamp Duty?

Form April 2020 if you owned a buy-to-let property in your personal capacity you would no longer be able to offset the mortgage interest payments as an expense against rental income in your self-assessment tax return.

This is not the same for limited companies that hold property.

Mortgage interest payments remain an allowable expense to reduce profits and corporation tax.

However, a limited company will still be liable to pay the 3% SDLT surcharge where a property costs over £40,000.

You will need to pay conveyancing and also potentially mortgage transfer costs.

A limited company pays the same Stamp Duty rate as an individual for non-residential property.

Here are some ways to reduce Stamp Duty as a property developer.

Can a limited company claim back Stamp Duty?

You can only claim back Stamp Duty as a limited company if you are eligible for a refund.

You may be able to claim an SDLT refund if you purchased a new main residence without selling your previous residence but then sold that previous residence within three years.


Need advice?
Contact us now

Free Online Tax Calculators

We continue to develop brand new U.S and UK tax calculators for you to use. We focus on tax calculators such as: Income Tax, Capital Gains Tax, Stamp Duty Land Tax, Inheritance/Estate Tax Use our online tax calculators today to help you make money-saving decisions tomorrow

Free online tax calculators

Enquire about our ongoing services

Book a call to discuss our property accountancy services

Get in touch

Book a paid for tax consultation

Use the code “Art20” to get 20% discount

Book now

Book a call to see how we can help you.

Consultation options.

We offer the two following options for initial consultations.


Our Ongoing Accountancy Services

Fixed price irrespective of how many properties you have

We charge on a fixed monthly fee

  • - Accounts submitted to HMRC & Companies House

  • - 60 minute onboarding tax call

  • - Unlimited 30 minute tax calls

  • - An holistic review of your tax structure and future plans

  • - Annual tax return review to discuss future tax plans

Our Monthly Accountancy Services


Tax Consultation + Tax Report + Video Recording

(Free for clients)

Want tax advice right now? Book today

  • - Upload your questions in advance

  • - Our Tax Advisors collectively discuss your questions

  • - A qualified tax advisors discuss the very best solution with you

  • - A tax report & meeting recording is sent within 24 hours

  • - Clarification questions are answered via email

Tax call from £124.95

Booking your appointment.