SPV Stamp Duty Calculator 2025
Calculate stamp duty for limited company and SPV property purchases
Calculate Your Stamp Duty
15% Flat Rate for High-Value Properties
Companies purchasing residential properties over £500,000 may pay a 15% flat rate on the entire purchase price - not the standard banded rates.
- Applies to companies, partnerships with company members, and collective investment schemes
- Property rental businesses can claim exemption if letting commercially
- Must be claimed on your SDLT return - seek professional advice
Annual Tax on Enveloped Dwellings (ATED)
In addition to stamp duty, company-owned properties over £500,000 face an annual ATED charge. Relief is available for property rental businesses, but you must submit an ATED return each year even if claiming relief.
Company SDLT Rates (Under £500,000)
For properties under £500,000, companies pay the same rates as individuals buying additional properties - standard rates plus the 5% surcharge.
Standard Company Rates (with 5% surcharge)
| Band | Rate |
|---|---|
| Up to £250,000 | 5% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5m | 15% |
| Over £1.5m | 17% |
These rates apply to company purchases under £500,000 or qualifying property rental businesses.
15% Flat Rate (Over £500,000)
For residential properties over £500,000, companies face a punitive 15% flat rate unless they qualify as a property rental business.
Flat Rate on Entire Price
No thresholds - applied to full purchase price
Example: A £750,000 property would cost £112,500 in stamp duty at the 15% rate.
Compare this to £52,500 for an individual buying an additional property at standard rates.
Example Company Purchase Calculations
These calculations show standard company rates (with 5% surcharge) for properties qualifying for property rental business relief.
Calculation Breakdown
England & NI (SDLT) • Additional Property
Property Price
£350,000
Up to £250,000
on £250,000
£7,500
£250,001 to £925,000
on £100,000
£8,000
Additional Property Surcharge
+£17,500
Total Tax Due
£15,500
Effective rate: 4.43%
Calculation Breakdown
England & NI (SDLT) • Additional Property
Property Price
£500,000
Up to £250,000
on £250,000
£7,500
£250,001 to £925,000
on £250,000
£20,000
Additional Property Surcharge
+£25,000
Total Tax Due
£27,500
Effective rate: 5.50%
Company vs Personal Ownership: Stamp Duty Comparison
| Property Price | Individual (Standard) | Individual (Additional) | Company (15% Rate) |
|---|---|---|---|
| £400,000 | £7,500 | £27,500 | £27,500 |
| £500,000 | £12,500 | £37,500 | £37,500 |
| £600,000 | £17,500 | £47,500 | £90,000(15%) |
| £750,000 | £25,000 | £62,500 | £112,500(15%) |
| £1,000,000 | £41,250 | £91,250 | £150,000(15%) |
| £1,500,000 | £91,250 | £166,250 | £225,000(15%) |
Note: Companies qualifying as property rental businesses pay the "Additional" rate, not the 15% rate.
ATED Annual Charges 2024/25
Company-owned residential properties over £500,000 face annual ATED charges. Relief is available for genuine property rental businesses.
| Property Value Band | Annual ATED Charge |
|---|---|
| £500,001 - £1 million | £4,400 |
| £1 million - £2 million | £9,000 |
| £2 million - £5 million | £31,050 |
| £5 million - £10 million | £72,700 |
| £10 million - £20 million | £145,950 |
| Over £20 million | £269,450 |
Company vs Personal Ownership: Key Considerations
Advantages of Company Ownership
- +Full mortgage interest relief against profits
- +Corporation tax at 25% (vs up to 45% income tax)
- +Potential inheritance tax planning benefits
- +Flexibility in profit extraction timing
- +Easier to add investors or transfer shares
Disadvantages of Company Ownership
- -Potential 15% stamp duty rate on properties over £500k
- -Annual ATED charges on high-value properties
- -Higher mortgage rates for company borrowing
- -Additional accounting and compliance costs
- -No CGT annual exemption on disposal
Claiming Property Rental Business Exemption
To avoid the 15% rate and pay standard company rates instead, your company must qualify as a property rental business:
- 1The property must be purchased for the purpose of a property rental business
- 2It must be let commercially on the open market (not to connected persons)
- 3No shareholder, director, or their family can occupy the property
- 4The exemption must be claimed on your SDLT return at the time of purchase
If conditions are not met within 3 years, you must notify HMRC and pay the additional tax.
SPV Stamp Duty Calculator: Company Property Purchases Explained
Many property investors use a Special Purpose Vehicle (SPV) or limited company to purchase buy-to-let properties. While there can be significant tax advantages to company ownership, the stamp duty implications are often more complex than for individual purchases.
Understanding SPV Property Purchases
An SPV is typically a limited company set up specifically to hold property investments. Since the restriction of mortgage interest relief for individual landlords in 2020, many investors have moved to company structures to maintain full interest deductibility against rental profits.
When using our SPV stamp duty calculator, remember that companies are always treated as additional property purchasers - there's no equivalent to first-time buyer relief for company purchases.
The 15% Flat Rate: When It Applies
The most significant stamp duty consideration for company purchases is the potential 15% flat rate. This punitive rate was introduced to discourage the "enveloping" of high-value residential property in corporate structures.
Using a stamp duty limited company property calculator correctly requires understanding when this rate applies:
- The property is residential and worth more than £500,000
- The buyer is a company, partnership with a company member, or collective investment scheme
- The buyer does not qualify for property rental business relief
Avoiding the 15% Rate
Most genuine property rental businesses can claim relief from the 15% rate. To qualify, your company must be purchasing the property for a property rental business, and it must be let commercially on the open market to parties not connected to the company.
ATED: The Annual Charge
Beyond stamp duty, company-owned residential properties worth over £500,000 face the Annual Tax on Enveloped Dwellings (ATED). This annual charge ranges from £4,400 for properties valued between £500,001 and £1 million, up to £269,450 for properties over £20 million.
Property rental businesses can claim ATED relief, but an annual return must still be submitted to HMRC.
Should You Use a Company Structure?
The decision between personal and company ownership depends on many factors beyond stamp duty, including your income tax rate, plans for the property, mortgage availability, and long-term investment strategy. We strongly recommend consulting a qualified tax advisor before making this decision.
Frequently Asked Questions
What is an SPV for property investment?
When does the 15% flat stamp duty rate apply?
Can my property company avoid the 15% rate?
What is ATED and when does it apply?
Should I buy property personally or through a company?
Does first-time buyer relief apply to company purchases?
What stamp duty does a company pay on property under £500,000?
Can I transfer my existing property into a company?
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Official Government Resources
HMRC: SDLT for Corporate BodiesGOV.UK
Official guidance on stamp duty for company property purchases
15% Rate GuidanceGOV.UK
When the 15% flat rate applies and exemptions available
ATED GuidanceGOV.UK
Annual Tax on Enveloped Dwellings - rates, reliefs, and returns
Property Rental Business ReliefGOV.UK
How to claim exemption from the 15% rate for rental businesses