BETAThis calculator is for informational purposes only and is not financial advice. Always consult HMRC or a qualified professional before making financial decisions.

Corporate Property Investment

SPV & Limited Company Stamp Duty Calculator

Calculate stamp duty when buying property through an SPV or limited company. Same SDLT rates as personal purchases — but no higher-rate exemptions.

Companies Always Pay the 5% Surcharge

When you buy property through a limited company or SPV, you pay the same SDLT rates as an individual — but the additional property surcharge (5%) ALWAYS applies because a company can never be a first-time buyer.

💡 However, companies get full mortgage interest relief and other tax advantages that may outweigh the higher SDLT.

SPV Stamp Duty Calculator

£

Why Buy Property Through an SPV?

Despite paying the 5% additional property surcharge, many investors choose to buy through Special Purpose Vehicles (SPVs) or limited companies for these tax and commercial advantages:

Tax Advantages

  • Full mortgage interest relief — Section 24 restrictions don't apply to companies
  • Corporation tax at 25% on profits (may be lower than personal income tax)
  • Capital gains tax relief — companies can claim indexation and other reliefs
  • Inheritance tax planning — shares can be gifted gradually

Commercial Benefits

  • Limited liability — personal assets protected from property risks
  • Portfolio management — easier to manage multiple properties
  • Joint ownership — multiple shareholders can invest together
  • Succession planning — easier to transfer ownership

Personal vs Company Purchase Comparison

Property PricePersonal (First)Personal (Second)Company/SPV
£300,000£5,000£20,000£20,000
£500,000£15,000£40,000£40,000
£750,000£27,500£65,000£65,000
£1,000,000£43,750£93,750£93,750
£1,500,000£93,750£168,750£168,750

Note: Company/SPV purchases always incur the 5% additional property surcharge as companies cannot be first-time buyers.

Annual Tax on Enveloped Dwellings (ATED)

In addition to SDLT, residential properties worth £500,000+ owned by companies are subject to ATED — an annual charge that must be paid every year you own the property.

2025/26 ATED Rates

£500k - £1m£3,900/year
£1m - £2m£7,850/year
£2m - £5m£26,350/year
£5m - £10m£60,900/year
£10m - £20m£126,050/year
Over £20m£252,200/year

ATED Exemptions

  • Property rental business (most buy-to-let qualifies)
  • Property development for resale
  • Property trading business
  • Financial institution business
  • Personal use (no exemption)

Most legitimate buy-to-let investments qualify for the rental business exemption.

SPV Stamp Duty FAQ

Does a company pay the first-time buyer rate?
No. Companies are always treated as having owned property before, so they cannot qualify for first-time buyer relief. The 5% additional property surcharge always applies to company purchases.
Is SDLT different for an LLP vs a limited company?
Generally no — both LLPs and limited companies pay standard SDLT rates with the 5% additional property surcharge. However, LLPs have different tax transparency rules, so seek specialist advice for your specific situation.
What is ATED and does it affect SDLT?
ATED (Annual Tax on Enveloped Dwellings) is a separate annual tax on residential properties over £500,000 held in companies. It's not part of SDLT but must be budgeted for separately. Most buy-to-let properties qualify for exemption under the rental business rules.
Can I avoid the 5% surcharge by using a company?
No — companies always pay the 5% additional property surcharge on residential purchases. However, the ongoing tax benefits (full mortgage interest relief, corporation tax rates, inheritance planning) may outweigh the higher upfront SDLT cost.
Should I buy personally or through a company?
This depends on your tax position, investment strategy, and long-term plans. While companies pay higher SDLT upfront, they offer full mortgage interest relief and other tax advantages. Higher-rate taxpayers often benefit from company ownership despite the additional SDLT. Always seek specialist tax advice.

Related Calculators

Back to Stamp Duty Calculator