If you are looking to acquire new business premises – whether it is an office or a shop – you will likely need to pay a number of fees and charges relating to the transaction.
One of the main outlays is commercial stamp duty, which applies to non-residential properties worth more than £150,000 and takes the form of a percentage of the overall cost of the space in question.
As such, stamp duty can represent a particularly large cost when buying a new commercial property – but there are ways and means of mitigating it if you consult the right experts.
MyStampDuty.co.uk can help you find out more about business stamp duty and put you in touch with qualified consultants who can help you reduce the amount you pay if you’re looking into property worth more than £500,000 – thus bringing down the overall cost of your purchase.
All about commercial stamp duty
Stamp duty for businesses is levied according to the price of the purchased property and, in some cases, the amount of annual rent it generates.
At present, non-residential spaces bought for less than £150,000 and with rent of less than £1,000 a year are exempt from stamp duty land tax.
Properties below this value threshold but with a rent of more than £1,000 come with a one per cent stamp duty charge, as do those worth between £150,000 and £250,000.
A three per cent tax applies to properties falling into the £250,000 to £500,000 bracket, while those bought for more than £500,000 will attract a four per cent stamp duty charge.
If the net present value of non-residential rent is more than £150,000, a tax of one per cent will be levied on the amount above this threshold.
As with residential stamp duty, there are certain exemptions and other types of relief that businesses may be able to benefit from.
For example, transferring property between companies in the same group for commercial reasons does not currently carry a stamp duty charge, so long as certain conditions are met.
Meanwhile, reconstruction and acquisition relief may be applicable where land and buildings are to be transferred between two organisations due to a transfer of an undertaking in exchange for shares that sees no change in ownership.
As you can see, it is well worth consulting trained experts to find out whether you can mitigate the cost of stamp duty when it comes to acquiring new commercial premises.
Depending on the property in question and your business’s circumstances, you may be able to significantly reduce the overall amount you pay for your new space.
Get expert help and reduce your commercial stamp duty
If you are keen to find ways to mitigate stamp duty on commercial property worth over £500,000, visit MyStampDuty.co.uk to find out about the first steps you will need to take.
You will find a wealth of information and advice on all aspects of stamp duty on our website – and we can put you in touch with qualified experts who can aid you in your mitigation efforts.
Our team of consultants include lawyers, chartered tax advisers, barristers and solicitors, so you can be sure of receiving well-informed advice on reducing your commercial stamp duty obligations.
In some cases, we can advise you on a suitable stamp duty strategy when it comes to pre-disposal restructuring – especially where properties need to be packaged before sale, options and leases need to be utilised or offshore arrangements are required.
Contact us today by filling out the form you can find on MyStampDuty.co.uk and we’ll set up a free review that will help you find out more about what we do and let us assess your business’s situation.
