Following today’s budget, the way stamp duty on freehold commercial property and leasehold premium transactions is calculated is changing. Currently, these rates apply to the whole transaction value. From 17 March 2016 the rates will apply to the value of the property over each tax band.
The new rates and tax bands will be 0% for the portion of the transaction value up to £150,000; 2% between £150,001 and £250,000, and 5% above £250,000.
Stamp duty rates for leasehold rent transactions will also change, with a new 2% stamp duty rate on leases with a net present value over £5 million.
There are transitional rules for purchasers who have exchanged but not completed before midnight tonight.