SDLT on commercial property (2026/27)

Commercial property is taxed under a completely different Stamp Duty Land Tax regime to homes. The non-residential bands start with a larger 0% slice, top out lower, and — crucially — carry no 5% additional-property surcharge. Here’s how the 2026/27 commercial bands work, with a worked example.

How commercial SDLT differs from residential

SDLT applies to property in England and Northern Ireland (Scotland uses LBTT and Wales uses LTT). Where the property is non-residential — a shop, office, warehouse, industrial unit, bare commercial land — or mixed-use (part commercial, part residential, such as a flat over a shop), you use the non-residential rates rather than the residential ones.

Like residential SDLT, it is charged progressively: each rate applies only to the slice of the price that falls within its band, not to the whole purchase. The big difference is on surcharges. The 5% higher-rate additional-property surcharge and the 2% non-resident surcharge that load residential purchases do not apply to non-residential or mixed-use buys. Buying a commercial unit through a limited company is taxed at the same non-residential rates, with no surcharge added.

The non-residential SDLT bands (2026/27)

These are the current HMRC non-residential and mixed-use rates. Lease premiums and the net present value of rent can create separate charges, so a lease acquisition needs its own calculation.

These bands are flatter than residential: the residential scale runs from 0% up to 12% and adds 5% on every band for an additional property, whereas the commercial scale tops out at a flat 5% above £250,000.

Worked example: a £500,000 commercial unit

Buying a commercial unit for £500,000, the tax is built up band by band:

So the headline 5% rate never applies to the whole price — only to the part above £250,000. That progressive structure is why the effective rate on a £500,000 unit lands well under 5%.

Why mixed-use can beat residential rates

Where a property genuinely qualifies as mixed-use, the commercial bands can produce a much lower bill than the residential ones — especially when the residential surcharge would otherwise bite. On that same £500,000 price:

Against a surcharged residential purchase, mixed-use treatment saves roughly £25,500 here. That gap is exactly why HMRC scrutinises mixed-use claims closely: the non-residential element has to be genuine, not incidental. Don’t assume a mixed-use classification — have your accountant or conveyancer confirm it for the specific property before you rely on these figures.

Which calculator to use

Our on-site stamp duty calculator is residential-only: it applies the residential bands and the 5% additional-property surcharge, neither of which is correct for a commercial or mixed-use purchase. For a commercial deal, don’t use it for the tax — instead size the borrowing with our commercial mortgage calculator, and confirm the SDLT figure with your accountant.

Where Vortex Finance fits

We arrange the finance; you confirm the tax. Once you know the SDLT and total cash needed, tell us about the purchase and we’ll compare suitable commercial mortgage options. A time-bound auction or completion may point to bridging, while ground-up or heavy works may require development finance.