Company property tax guide
Stamp Duty Land Tax for limited companies buying residential property in England, including higher rates, the £500,000 corporate rate, reliefs and ATED.
Short answer
A limited company buying residential property in England normally pays the higher SDLT rates, starting at 5%. Some purchases above £500,000 face a 17% flat rate unless a relief applies, and non-resident companies may pay a further 2% surcharge.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityLimited company Stamp Duty Land Tax is usually higher than the standard residential rate because companies generally pay the additional dwelling surcharge. The final bill depends on price, property use, residence, connected transactions and available reliefs.
Companies normally pay higher residential rates
A 17% corporate rate can apply above £500,000
Non-resident surcharge may add 2%
ATED can apply after purchase
For residential property completed in England or Northern Ireland from 1 April 2025, higher rates are generally 5% up to £125,000, 7% from £125,001 to £250,000, 10% from £250,001 to £925,000, 15% from £925,001 to £1.5 million and 17% above £1.5 million.
The rates apply in slices rather than one rate to the whole price. Scotland uses Land and Buildings Transaction Tax and Wales uses Land Transaction Tax, so this guide's SDLT figures do not apply there.
A company buying a dwelling for more than £500,000 can face a flat 17% rate on the whole consideration. Relief can be available for qualifying property rental businesses, property developers, traders, financial institutions and employee accommodation.
Relief conditions matter after completion too. A change in use can withdraw relief, so document the commercial purpose and monitor it rather than treating the return as finished once filed.
A non-UK resident purchaser can pay a further 2% surcharge on residential property. Residence for SDLT has its own tests and should not be assumed from incorporation alone.
Connected or linked transactions can be aggregated to determine rates. Buying several properties from the same seller under one arrangement needs specialist review, including whether multiple dwellings relief is available under the law applying at completion.
Annual Tax on Enveloped Dwellings can apply where a company owns UK residential property worth more than £500,000. Rental business and development reliefs can reduce the charge to nil, but a relief declaration return may still be required.
ATED uses valuation dates and annual filing rules separate from the SDLT return, annual accounts and Corporation Tax return.
Compare SDLT, finance terms, Corporation Tax on rental profit, tax when money is withdrawn, annual compliance and tax on exit. Transferring an existing personally owned property to a company can trigger SDLT and Capital Gains Tax even where no cash changes hands.
Rates and deadlines are reviewed for 2026/27, but HMRC interest rates and individual circumstances can change the result. Check the linked official guidance or ask us before acting.
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Frequently asked
Usually yes. Companies generally pay the higher residential SDLT rates, including the additional dwelling surcharge.
For most purchases from 1 April 2025 it starts at 5% and rises by price band. A flat 17% rate can apply to some dwellings over £500,000.
No. Qualifying rental business, development, trading and other reliefs can disapply it, subject to conditions.
It may pay an additional 2% residential surcharge if the SDLT residence tests are met.
Annual Tax on Enveloped Dwellings is a separate annual regime for certain company-owned UK homes valued above £500,000.
No. Scotland has LBTT and Wales has LTT, each with different bands and company rules.
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Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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