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The South West Specialists

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Budget 2016 – Good news for those purchasing commercial property

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The Government has announced that they will reform the stamp duty land tax (SDLT) on freehold and leasehold premium non-residential transactions as of midnight on the 16th March. The SDLT will now apply to the portion of the purchase price within each band rather than the whole amount. The thresholds will also be amended as follows:

Up to £150,000 0%
£150,001 to £250,000 2%
£250,000 plus 5%

So by way of an example a property worth £300,000 would currently be eligible for a SDLT payment payment of £9,000 and under the new scheme will be eligible for a payment of £4,500 which is a saving of £4,500. 

Joanne Harwood, Associate at Vickery Holman, says “This is good news for those buying commercial property and will provide a substantial saving.  The reforms to SDLT on purchases of additional residential property from 1st April 2016 will still come into effect and have the potential to alter values of residential properties for those looking at buy to let and the like so this is at least some good news for the property sector.”