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 flat 17% corporate rate applies to the entire price. Enter a purchase price to see the exact bill and where the cliff edge bites.
Deciding between company and personal ownership? Compare company vs personal stamp duty.
Buying through a company? Structure it before you commit
Pre-purchase structuring can legitimately reduce stamp duty on company and portfolio buys.
What clients say
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 three conditions are all met. For personal purchases, use our main stamp duty calculator instead.
The 17% Rate Applies When:
- 1Non-natural person purchaser: The buyer is a company, partnership with corporate members, or other non-individual entity
- 2Residential property: The property is or includes a dwelling (house, flat, etc.)
- 3Over £500,000: The purchase price exceeds the £500,000 threshold
Important Exemptions
The 17% rate does NOT apply to:
- •Dwellings acquired exclusively for a qualifying property rental business
- •Property developers acquiring for development and resale
- •Property traders using the property commercially in their trade
- •Financial institutions acquiring properties in course of lending
- •Commercial or mixed-use property (uses 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%; earlier transactions used 15%.
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:
- 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: £65,000 (saving £62,500 by buying personally)
£1,000,000 Residential Property
| £0 – £1,000,000 | 17% | £170,000 |
Effective rate: 17%
If purchased personally as additional property: £93,750 (saving £76,250 by buying personally)
Why Buy Through a Company at All?
Since a company almost always pays more stamp duty than an individual, 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% flat rate applies when three conditions are all met: the buyer is a company (or other non-natural person), the property is residential, and the purchase price exceeds £500,000. The 17% rate is charged on the entire price, not just the portion above £500,000, which creates a sharp cliff edge at the threshold.
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?
Almost never. Below £500,000 a company pays the same as a personal additional-property purchase. Above £500,000 the 17% flat rate is significantly more expensive than personal rates. Companies are typically chosen despite the higher SDLT because of income tax benefits (Section 24 not applying 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 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. Property purchases with an effective date before 31 October 2024 use the old 15% rate; transactions completing on or after that date pay 17%. 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
ACASDLT Expert since 1999Stamp Duty Land Tax Specialist
ACA and Tax Adviser with a career spanning nearly four decades, specialising in SDLT planning and advisory work since 1999.