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Stamp duty revenues surge again as confidence grows

Stamp duty revenue jumped again to £1.34 billion in June, which eclipsed the £1.22 billion received in the same period last year, according to figures from HMRC.

So far this year the tax revenues from property sales have reached £7.5 billion, a 40 per cent rise compared to 2021.

The higher receipts are believed to be due to a general uplift in economic confidence following the easing of lockdown.

Stamp duty land tax (SDLT) is payable on commercial and residential property over a certain price in England and Northern Ireland.

The rules are different for Scotland, with the Land and Buildings Transaction Tax, and in Wales, with Land Transaction Tax if the sale was completed on or after 1 April 2018.

When buying commercial property with a lease involved, SDLT rules become more complex and the duty payable is calculated based on several variables, so it is important you consult your property professional before going ahead.

As it stands, if you pay £150,000 or more for a non-residential or mixed-use property, such as shops or offices, agricultural land, any other land or property that is not part of a dwelling’s garden or grounds, or six or more residential properties in a single transaction, you must pay increasing amounts of SDLT above that price.

A broad definition of ‘mixed’ property that has residential and commercial uses, such as a flat or accommodation connected with a shop, office, or doctor’s surgery.

How are the rates calculated?

Up to £150,000 Zero payable

From 150,000 to £250,000 2 per cent

Above £250,000 5 per cent

Even for most transactions under £150,000, you will need to fill in an SDLT (stamp duty land tax) return.

For those thinking of investing in property rent as holiday accommodation, residential rates of stamp duty should apply, but if it is rented out for more than 140 days, you will be liable for business rates.

For help and advice with commercial property matters, please get in touch with our team today.