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 The relief can be withdrawn if the property is later used for non-qualifying purposes (for example, occupied by a connected person), so the trading purpose needs to be real and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. We don’t advise on the structure, but once your accountant has confirmed it, we compare suitable buy-to-let mortgages for the company or personal application. HMRC explains the separate 17% corporate-body rate and qualifying reliefs in its corporate bodies guidance.