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Any non-residential or mixed use property bought for over £150,000 is subject to stamp duty. Non-residential property typically means commercial property, or property that isn’t suitable to live in. A mixed property is one that has both residential and non-residential elements, such as a flat with a shop underneath.
For tax purposes, the category also includes six or more residential properties bought in a single transaction.
You also pay stamp duty on agricultural land, even if it comes as part of a residential property, for example a cottage with fields.
You may pay a higher rate of duty for multiple purchases, or transfers from the same seller.
The tax is also calculated differently from residential stamp duty. Two amounts are calculated separately and then added together; the purchase price of the lease and the value of the annual rent you pay.
Since 2021, non-UK residents have had to pay a higher rate of stamp duty when purchasing property in England and Northern Ireland.
The additional levy is two percentage points above the rate for UK residents on the given tax band. For example, where a UK resident will pay 5pc tax on a property bought for £250,001-£925,000, a non-UK resident will pay 7pc.
Overseas buyers also face an additional 2pc surcharge on top of the existing 3pc tax on second homes and buy-to-let properties.
Your solicitor should be able to either help you arrange the stamp duty payment, or just make the transaction on your behalf.
If you have a lawyer or conveyancer acting for you, they can submit the stamp duty return online, but if you are managing it yourself it needs to be done via a paper form. You can order the form you need – SDLT1 – online or by calling HMRC.
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