Stamp Duty changes to benefit Commercial buyers

In December 2014 residential Stamp Duty Land Tax (“SDLT”) rules were changed to benefit buyers, by being payable on the portion of the transaction value that falls within each tax band. From 17 March 2016, non-residential SDLT is following suit.

Commercial buyers will still pay nothing on the first £150,000, but will now pay 2% on the portion from £150,000 – £250,000 and 5% on anything above £250,000.

Adam Bromley, Head of Commercial Property here at Forbes commented, “This is brilliant news. Many people will be pleased with their savings on Stamp Duty Land Tax and hopefully the change will contribute to the increasing activity in the Commercial Property market.”

Previously, a Commercial Property purchased at £275,000 would have attracted SDLT of £8,250, however on/ after 17 March 2016 this figure will be reduced to £3,250, saving £5000. These changes will be particularly welcomed by Self-Invested Pension Providers (SIPPs) and it is hoped that these changes will see a rise in the number of SIPPs purchasing Commercial Property.

Any buyers that have already exchanged contracts but not yet completed before the changes come into force, will have the option to use the new rates in calculating their Stamp Duty Land Tax, ensuring that they do not lose out.

Should you require further information on how this may affect you, please contact our Commercial Property team on Freephone 0800 689 0831 or send any question through to Forbes Solicitors via our online Contact Form.

Trishna Modessa

About Trishna Modessa

Trishna is a paralegal in the Commercial Property department at Forbes Solicitors. Within her blogs Trishna deals with all aspects of commercial property including leases (from both landlord and tenant perspective), licences, acquisitions and disposals along with recent updates within the property sector.

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