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Stamp Duty Land Tax: Corporate Bodies


Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) is charged at 15% on residential properties costing more than £500,000 bought by certain corporate bodies or ‘non-natural persons’. These include:

  • companies
  • partnerships where one or more of the partners is a company
  • collective investment schemes

The 15% rate does not apply to residential property bought by a company that is acting as a trustee of a settlement.

These bodies may also need to pay Annual Tax on Enveloped Dwellings.

Relief from the 15% higher rate charge

Relief may be available if the property is:

  • used in a property rental business
  • bought by a property developer or trader
  • used in a trade involving making the property available to the public
  • bought by a financial institution in the course of lending
  • occupied by employees of the purchaser
  • a farmhouse
  • bought by a qualifying housing co-operative

You must meet the conditions that apply for each relief.

The ‘Homes for Ukraine’ Sponsorship Scheme and relief from the 15% higher rate charge

If you already have relief from the 15% higher rate charge at the time you buy the property, you can continue to get this if the property is used under the ‘Homes for Ukraine’ Sponsorship Scheme.

Relief will not be withdrawn if either:

  • the property is occupied by refugees under the scheme
  • you’re taking steps, without delay, to use the property as part of the scheme

Additional surcharges

There is a 3% surcharge on residential properties bought by companies. Find more information about higher rates of Stamp Duty Land Tax.

There is also a 2% surcharge on residential properties in England and Northern Ireland bought by non-UK residents on or after 1 April 2021. The 2% surcharge applies on top of all other residential rates of SDLT including the 3% higher rate surcharge.

More information is available on the rates for non-UK residents.

Source: HMRC

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