Why Company Purchases Are Different
Residential property bought by a "non-natural person" — a company, a partnership with a corporate member, or a collective investment scheme — follows different SDLT rules from a personal purchase, in England and Northern Ireland only:
| Price | Rate | Basis |
|---|---|---|
| £0 – £500,000 | Standard additional-dwelling surcharge bands | Companies never qualify for first-time-buyer relief |
| Above £500,000 | Flat 15% (17% if non-resident) on the whole price | Schedule 4A, Finance Act 2003 — replaces banded calculation entirely |
Reliefs can bring the rate back down to standard bands — most commonly for property rental businesses, property developers/traders, and employee accommodation. This calculator assumes no relief applies; always confirm with a solicitor or tax adviser.
Do limited companies pay stamp duty?
Yes. A limited company always pays SDLT on a residential company purchase in England or Northern Ireland — and usually more than an individual would. At or below £500,000 the standard additional-dwelling surcharge bands apply, because a company can never claim first-time-buyer relief. Above £500,000 a flat 15% rate replaces the bands entirely. There are no reduced SDLT rates for limited companies as such; the only way down from these figures is a specific relief (rental business, development, employee accommodation).
The Formula
Source: Schedule 4A, Finance Act 2003 (15% flat rate) + Schedule 4ZA (additional-dwelling bands) — assumes no relief applies.
tax = Σ over additional-dwelling bands: (min(price, band_upper) − band_lower) × band_rate
if price > £500,000:
rate = 0.15 + (0.02 if non-resident)
tax = price × rate (flat, whole price — not marginal, replaces the banded calculation entirely)
Unlike every other calculator on this site, the >£500,000 case is not a marginal band calculation — one flat rate applies to the entire price the moment it crosses the threshold.