Great news for small commercial businesses

New Stamp Duty Rates for small businesses

In the last week the Chancellor George Osborne has announced changes in the way that stamp duty on freehold commercial property and leasehold premium transactions is calculated with a slice-based approach being introduced.

This means that SDLT is payable on the portion of the transaction value which falls within each tax band, unlike the current system where the rates apply to the whole transaction value.

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
  • 5% above £250,000

The measure is meant to provide a boost for small businesses considering property purchases. For example, if you buy a commercial property worth £270,000, you would have paid £8,000 in stamp duty. Since the implementation of the new rates on 17th March, the SDLT will now be £3,000.

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. All leasehold rent transactions up to £5m will remain unaffected.


 Small business rate relief to double in 2017

In the 2016 budget, the Chancellor also announced that from April 2017, small businesses that occupy property with a rateable value of £12,000 and below will receive 100 per cent business rate relief.
There will be a tapered relief for businesses with properties worth between £12,000 and £15,000.

The Chancellor stated that the outcome of the new relief will mean 600,000 small businesses would not pay a penny in business rates from next year, while a further 250,000 would experience a fall in their rates.

The Government is also expected to raise the threshold for the standard business rate multiplier from a rateable value of £18,000 to £51,000.


If you are considering your first commercial property or are looking at expanding your existing portfolio, we can offer advice and support from years of experience of helping our clients to find the right solution for their commercial property needs.

You can contact the commercial team on 01903 201212 or you can email our commercial director Steve Berrett at

Content accurate at time of publishing.

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