Budget: changes to commercial SDLT Rates

Interesting and unexpected changes to the way SDLT is to be calculated for commercial properties will apply from midnight tonight. SDLT will now be calculated by reference to a series of SDLT rates that apply to the amount of consideration falling within each band. The new bands are:

Chargeable Consideration

Up to £150,000                                           0%

Over £150,000 and up to £250,000         2%

Over £250,000                                             5%

Given that SDLT on residential properties already follows this approach perhaps these changes should not come as a surprise…..

Mr Osborne gave owners of commercial property a fillip, however. He said rates of stamp duty land tax for commercial property will fall in the lower bands, with a zero rate for properties worth up to £150,000. The changes apply from midnight.