Limited Company Stamp Duty Calculator 2026: SPV & Ltd SDLT
Calculate stamp duty when a limited company, SPV, or other non-natural person buys residential property. Below £500,000 you pay standard rates plus the 5% additional property surcharge; above £500,000 a 17% corporate rate applies to the entire price unless a relief applies, such as for a property rental business. Enter a purchase price and say whether the company will let, develop or trade in the property to see the exact bill.
Deciding between company and personal ownership? Compare company vs personal stamp duty.
Buying through a company? The rates are different
Companies pay the 5% surcharge on homes, and a flat 17% above £500,000 unless a relief applies.
Over £500,000, relief from the 17% rate is available for a property rental business, property development or trading, and some other qualifying uses (FA 2003 Sch 4A). It is withdrawn if, within 3 years, a shareholder or someone connected to them is allowed to live there.
A company pays the higher rates for additional dwellings on a residential purchase whether or not it already owns another property, provided the price is £40,000 or more. There is no first-property exemption for corporate buyers.
Limited Company SDLT Breakdown
| Band | Rate | SDLT |
|---|---|---|
| £0 to £125,000 | 5% | £6,250 |
| £125,000 to £250,000 | 7% | £8,750 |
| £250,000 to £500,000 | 10% | £25,000 |
| Total SDLT Payable | £40,000 | |
| Effective Rate | 8.00% | |
If Buying Personally as Additional Property
| Band | Rate | SDLT |
|---|---|---|
| £0 to £125,000 | 5% | £6,250 |
| £125,000 to £250,000 | 7% | £8,750 |
| £250,000 to £500,000 | 10% | £25,000 |
| Total SDLT | £40,000 | |
Difference: £0 less as a company
If Buying Personally as Main Residence
| Band | Rate | SDLT |
|---|---|---|
| £0 to £125,000 | 0% | £0 |
| £125,000 to £250,000 | 2% | £2,500 |
| £250,000 to £500,000 | 5% | £12,500 |
| Total SDLT | £15,000 | |
Difference: £25,000 more as a company
Disclaimer: This tool does not constitute financial advice. We do not recommend taking actions based solely on these results. The calculator makes assumptions and results may be inaccurate due to changes in government policy, interest rates, or personal circumstances. You use this information at your own risk. We can't guarantee to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong. For official guidance, visit Gov UK.
When Does the 17% Rate Apply?
The 17% corporate SDLT rate is a flat rate applied to the entire purchase price when all four conditions below are met. For personal purchases, use our main stamp duty calculator instead.
The 17% Rate Applies When:
- 1Company purchaser: The buyer is a company, a partnership with a company as a member, or a collective investment scheme. A company acting as trustee of a settlement is not caught
- 2Residential property: The property is or includes a dwelling (house, flat, etc.)
- 3Over £500,000: The purchase price exceeds the £500,000 threshold
- 4No relief applies: None of the reliefs listed below is available
Reliefs From the 17% Rate
Relief from the 17% rate is available where the property is:
- •Used in a property rental business (the usual route for buy-to-let companies)
- •Bought by a property developer or trader
- •Used in a trade that makes the property available to the public
- •Bought by a financial institution in the course of lending
- •Occupied by employees of the purchaser, a farmhouse, or bought by a qualifying housing co-operative
A relieved purchase is not tax-free: the company pays the standard rates plus the 5% surcharge instead (GOV.UK: SDLT for corporate bodies). Commercial or mixed-use property is outside the 17% rate altogether and uses the lower non-residential rates (see the commercial calculator).
The corporate SDLT rate was introduced at 15% in 2012 and increased to 17% on 31 October 2024. Purchases completing on or after that date pay 17%, unless the contract was entered into before 31 October 2024 and has not been varied or assigned since, in which case 15% still applies.
Below £500,000: Standard Rates Plus 5%
Below £500,000, companies use standard SDLT bands plus the 5% additional property surcharge. The £500,000 threshold creates a steep cliff edge. See our corporate buyer guide for the full picture.
Under £500,000
Standard SDLT bands plus 5% additional property surcharge:
- £0 – £125,000: 5%
- £125,001 – £250,000: 7%
- £250,001 – £925,000: 10%
- £925,001 – £1.5M: 15%
- £1.5M+: 17%
Over £500,000
Flat 17% rate on the entire purchase price, unless a relief applies:
- Single rate: 17%
- No banding
- Applied to full price
- Often significantly higher than banded calculation
Worked Example: The £500,000 Threshold
£400,000 Property (Below Threshold)
| Band | Rate | SDLT |
|---|---|---|
| £0 – £125,000 | 5% | £6,250 |
| £125,001 – £250,000 | 7% | £8,750 |
| £250,001 – £400,000 | 10% | £15,000 |
| Total SDLT | £30,000 | |
Effective rate: 7.5%
£500,001 Property (Just Over Threshold)
| £0 – £500,001 | 17% | £85,000 |
At exactly £500,000 the same company pays £40,000 (5% on the first £125,000, 7% to £250,000, 10% to £500,000). One extra pound of price adds £45,000, a 113% increase.
SPV vs Trading Company
The choice between a Special Purpose Vehicle (SPV) and a trading company affects structuring, financing, and exit strategy, though SDLT treatment is identical for both. Review our SPV guide for structuring options.
Special Purpose Vehicle (SPV)
- ✓Dedicated to single property or project
- ✓Cleaner for investors and lenders
- ✓Easier to sell or transfer ownership
- ✓Ring-fenced liability protection
- ✗Additional setup and admin costs per property
Trading Company
- ✓Holds multiple properties in one entity
- ✓Lower admin overhead for portfolios
- ✓Can offset losses across properties
- ✗More complex accounting
- ✗Harder to sell individual properties
SDLT Treatment
Both SPVs and trading companies are subject to the same SDLT rules. The 17% rate applies equally to both structures when buying residential property over £500,000, unless a specific relief applies, for example a qualifying property rental business.
More Worked Examples
£300,000 Residential Property (Below Threshold)
Standard rates plus 5% surcharge apply:
| £0 – £125,000 | 5% | £6,250 |
| £125,001 – £250,000 | 7% | £8,750 |
| £250,001 – £300,000 | 10% | £5,000 |
| Total SDLT | £20,000 | |
Effective rate: 6.67%
£750,000 Residential Property (17% Flat)
| £0 – £750,000 | 17% | £127,500 |
Effective rate: 17%
If purchased personally as additional property, or by a company claiming property rental business relief: £65,000 (£62,500 less)
£1,000,000 Residential Property
| £0 – £1,000,000 | 17% | £170,000 |
Effective rate: 17%
If purchased personally as additional property, or by a company claiming property rental business relief: £93,750 (£76,250 less)
Why Buy Through a Company at All?
Since a company never pays less stamp duty than an individual buying an additional property, and pays far more above £500,000 where no relief applies, the case for incorporation rests on other taxes. Landlords typically weigh:
- Mortgage interest relief: Section 24 restricts personal landlords to a 20% tax credit on finance costs; corporate landlords still deduct interest in full before corporation tax.
- Retained earnings: Profits left in the company are taxed at corporation tax rates rather than your marginal income tax rate, helping portfolio growth.
- Inheritance and succession: Shares can be gifted or structured for estate planning more flexibly than directly held property.
The trade-off is the higher SDLT modelled above, plus extra running costs. Run the numbers both ways with our company vs personal comparison before deciding.
Frequently Asked Questions
When does the 17% corporate stamp duty rate apply?
The 17% rate applies when the buyer is a company (or a partnership with a company as a member, or a collective investment scheme), the property is a dwelling, the price is more than £500,000, and no relief applies. It is charged on the entire price, not just the portion above £500,000, which creates a sharp cliff edge. A company letting the property as part of a property rental business can normally claim relief, which takes the bill back to standard rates plus the 5% surcharge.
What stamp duty does a limited company pay below £500,000?
For residential purchases below £500,000, companies use the standard residential bands plus the 5% additional property surcharge. The effective bands are 5% up to £125,000, 7% to £250,000, 10% to £925,000, 15% to £1.5m, and 17% above. Commercial property purchased by a company uses the lower commercial rates with no surcharge.
Is buying property through a limited company cheaper for stamp duty?
No. A company never pays less than an individual buying an additional property. Below £500,000, and above it where a relief such as property rental business relief applies, the bill is the same. Above £500,000 with no relief, the 17% rate is significantly more expensive. Companies are typically chosen for other reasons: income tax (Section 24 does not apply to corporate landlords), retained earnings flexibility, and inheritance planning.
What is the difference between SPV and trading company SDLT?
There is no SDLT difference between a Special Purpose Vehicle (SPV) and a trading company. Both are subject to the same 17% rate above £500,000 where no relief applies, and the same standard rates plus 5% surcharge below it. Both can also access the same reliefs, for example where the dwelling is acquired exclusively for exploitation as a source of rents in the course of a qualifying property rental business.
When did the corporate stamp duty rate change from 15% to 17%?
The corporate SDLT rate increased from 15% to 17% on 31 October 2024. Transactions with an effective date on or after that date pay 17%, except where the contract was entered into before 31 October 2024 and has not been varied or assigned since: those keep the 15% rate even if they complete later. The rate was originally introduced at 15% in 2012.
Does the 17% rate apply to commercial property bought by a company?
No. The 17% rate applies only to residential property. A company buying commercial or mixed-use property uses the lower non-residential rates (0% to £150,000, 2% to £250,000, 5% above) with no surcharge. Use the commercial stamp duty calculator for those purchases.
Reviewed by
Julie White
ACAStamp duty specialist since 1999Stamp Duty Land Tax Specialist
ACA and Tax Adviser with a career spanning nearly four decades, specialising in stamp duty planning and advisory work since 1999.