Commercial stamp duty: non-residential SDLT rates and leases

Non-residential property for SDLT includes shops, offices, industrial units, agricultural land, forests and land that is not part of a home's garden or grounds. Mixed-use property, which combines residential and non-residential parts, such as a shop with a flat above, is also taxed at the non-residential rates.

Six or more homes bought in a single transaction can also be treated as non-residential. The type of property on the effective date decides which rates apply.

For freehold purchases and lease premiums, the non-residential rates are zero up to £150,000, 2% from £150,001 to £250,000 and 5% above £250,000 (GOV.UK, accessed 20 Oct 2026). The higher rates for additional homes and the non-resident surcharge do not apply to non-residential property.

The rates are charged in slices, like the residential bands, so each rate applies only to the part of the price inside its band.

Worked example, using example figures, not market data: a shop bought freehold for £400,000 pays nothing on the first £150,000, 2% on the next £100,000 and 5% on the final £150,000. That is £2,000 plus £7,500, a total of £9,500.

The commercial stamp duty calculator will apply the same bands to a price entered by the user.

A new non-residential lease can be taxed on two parts: any premium paid, using the rates above, and the rent, based on the net present value of the rent over the term. The rent element is taxed at zero up to £150,000, 1% from £150,001 to £5 million and 2% above that (GOV.UK, accessed 20 Oct 2026).

Assigning an existing lease is treated as a purchase of the lease, so the price paid for it is taxed, but not the rent.

A return is due within 14 days of the effective date for most commercial purchases and leases (GOV.UK, accessed 20 Oct 2026). Leases with rent reviews, turnover rent or variable rent can need further returns when the rent becomes known, and extending or varying a lease can also create a new charge.

Overage payments and deferred payments on land can need later returns too, so commercial buyers often keep the transaction under review for some years.

Stamp duty is part of the cost of buying commercial property and is not usually lent by commercial lenders, so it has to be funded from the buyer's own money along with the deposit, fees and any costs of setting up the business. Lenders look at the total cost when they assess a deal.

How lenders assess commercial purchases, including deposits and the documents they ask for, is in the guide to commercial mortgages.