Calculate SDLT on commercial and mixed-use property purchases and leases using 2026-27 rates.
This calculator provides estimates for guidance only. It does not constitute financial or tax advice. Commercial SDLT rates and thresholds may change. Always verify with HMRC or a qualified tax adviser before making financial decisions.
Stamp Duty Land Tax (SDLT) on commercial and mixed-use property in England and Wales follows a different rate structure from residential property. The rates are generally lower, particularly for higher-value transactions, which is one reason some buyers explore mixed-use classification for properties that include both residential and commercial elements. Commercial SDLT applies to purchases of shops, offices, warehouses, factories, agricultural land, and any property that is not purely residential. For lease transactions, SDLT is calculated differently. In addition to any premium paid for the lease, SDLT is also charged on the net present value (NPV) of the total rent over the lease term. The NPV calculation uses a 3.5% annual discount rate set by HMRC, reflecting the time value of money. This calculator handles both purchase and lease transactions, applying the correct 2026-27 SDLT rates to give you an accurate estimate of the tax due.
To calculate commercial stamp duty: 1. Enter the property price or lease premium. For a freehold purchase, this is the full purchase price. For a lease, this is any premium being paid upfront (enter 0 if there is no premium). 2. Select the transaction type. Choose "Freehold purchase" for buying commercial property outright. Choose "New lease" for entering into a new commercial lease. Choose "Existing lease assignment" for taking over an existing lease. 3. For lease transactions, enter the lease term in years and the annual rent payable. These fields only affect the calculation for lease transactions. 4. Review the results. The calculator shows the total SDLT due, the effective tax rate, a breakdown by band, and the net property cost (price plus SDLT). The bar chart visualises the tax payable in each band.
Commercial SDLT on purchases uses a progressive banded structure: 0% on the first GBP 150,000 2% on the portion from GBP 150,001 to GBP 250,000 5% on the portion above GBP 250,000 For example, on a GBP 500,000 commercial property: 0% on GBP 150,000 = GBP 0, 2% on GBP 100,000 = GBP 2,000, 5% on GBP 250,000 = GBP 12,500. Total SDLT = GBP 14,500. For commercial leases, SDLT is charged in two parts: 1. Premium SDLT: Any lease premium is taxed using the same purchase bands above. 2. Rent SDLT: The net present value (NPV) of the total rent over the lease term is calculated using a 3.5% annual discount rate. NPV = sum of (annual rent / (1.035)^year) for each year of the lease. SDLT on the NPV is: 0% up to GBP 150,000, 1% from GBP 150,001 to GBP 5,000,000, and 2% above GBP 5,000,000. The effective rate is the total SDLT divided by the transaction value, expressed as a percentage. Importantly, the additional dwelling surcharge (currently 5% in England and Wales) does not apply to commercial or mixed-use property, making commercial rates significantly lower for higher-value transactions.
Inputs: Property price: GBP 500,000, Transaction type: Freehold purchase
Inputs: Property price: GBP 0 (no premium), Transaction type: New lease, Lease term: 20 years, Annual rent: GBP 50,000
Inputs: Lease premium: GBP 200,000, Transaction type: New lease, Lease term: 10 years, Annual rent: GBP 30,000
Commercial SDLT applies in England and Wales. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) for commercial properties, each with their own rate structures. A key advantage of commercial SDLT rates is that they apply to mixed-use properties as well. If a property includes any non-residential element (such as a flat above a shop, or residential property with significant land), it may qualify for commercial rates. This can result in substantial savings, particularly for properties above GBP 500,000 where the residential additional property surcharge would otherwise apply. For lease transactions, SDLT is payable within 14 days of the effective date (usually completion). If the lease is extended or varied, additional SDLT may be due. Complex lease arrangements may require specialist tax advice. This calculator uses the 2026-27 SDLT rates. Rates and thresholds can change in the Budget or at other times, so always verify current rates with HMRC or your solicitor before completing a transaction.