Stamp duty for a limited company / SPV (2026/27)

Do companies pay more stamp duty?

Yes. A limited company (or any other “non-natural person”) buying a dwelling in England or Northern Ireland always pays the higher additional-property SDLT rates — the same 5 percentage-point surcharge that applies to a second home or buy-to-let. The difference for a company is that there is no exemption for its first purchase: an individual buying their only home pays the standard rates, but a company pays the surcharged rates from the very first property it buys.

To model this in the calculator, choose “Additional property (second home / buy-to-let / company)” as the buyer type — that applies the surcharge on every band, which is exactly how a company purchase is taxed.

The 17% flat rate over £500,000 — and the relief most SPVs claim

There is a separate trap to know about. A company (or other non-natural person) buying a single dwelling for more than £500,000 can be charged a 17% flat rate on the whole price — not the banded rates above — unless a relief applies. This is aimed at people “enveloping” expensive homes inside a company for personal use.

The good news for investors: a genuine property-rental or property-development business usually qualifies for relief from the 17% flat rate. So most buy-to-let SPVs and development companies pay the standard additional-property rates (5/7/10/15/17%), not the 17% flat. The relief can be withdrawn if the property is later used for non-qualifying purposes (for example, occupied by a connected person), so the trading purpose needs to be real and maintained.

Worked example: a £300,000 buy-to-let bought by an SPV

Say your SPV buys a £300,000 rental flat. The price is below £500,000, so the 17% flat rate doesn’t apply — you pay the banded additional-property rates:

That £20,000 is exactly what an individual would pay buying the same property as an additional property — buying through a company doesn’t add SDLT on top of the surcharge; it simply means the surcharge always applies.

Above £500,000: where the relief really matters

The relief makes the biggest difference on higher-value buys. On a £600,000 dwelling, the 17% flat rate would be £102,000. With property-rental relief, the same SPV pays the banded rates — £6,250 + £8,750 + (£350,000 × 10%) £35,000 = £50,000 — saving £52,000. Claiming the right relief on the SDLT return is therefore essential, which is a conveyancer’s job, not ours.

We arrange the finance; you confirm the tax

Whether you buy personally or through an SPV changes both your tax position and the lending available — many landlords use a limited company specifically because mortgage interest is treated as a business cost. We don’t advise on the tax, but we do arrange the buy-to-let mortgage around it, shopping 100+ lenders for the sharpest rate on a company or personal application. If you’re also weighing the exit, our guide to capital gains tax on property covers what happens when you sell.