With the majority of commercial property purchases carried out within SIPP and SSAS being below £1million, the revised commercial property stamp duty rates announced in the March budget are resulting in considerable savings in the amount of stamp duty payable.
The new rates and bandings are:
| Purchase Price | Stamp Duty |
|---|---|
| 0 – £150,000 | 0% |
| £150,001 – £250,000 | 2% |
| £250,001 + | 5% |
Stamp duty is payable on the proportion of the purchase price that falls into each band.
For example, stamp duty on a £400,000 purchase would be nil on the first £150K, 2% on the next £100K and 5% on the next £150K – a total of £9,500 as opposed to £12,000 under the previous rules.
