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How To Avoid Stamp Duty On Commercial Property?

Property Saviour » Tax » How To Avoid Stamp Duty On Commercial Property?

Ah, stamp duty – the bane of every property buyer’s existence! It’s like a tax ninja, sneaking up on you when you least expect it and taking a chunk out of your hard-earned cash. But fear not, my friend – there are ways to outwit the stamp duty system and keep more of your money where it belongs: in your pocket.

First off, let’s talk about the basics. Stamp duty is a tax that you pay when you buy a property, and it’s based on the purchase price. For commercial properties, the rates can be pretty hefty – we’re talking up to 5% for properties over £250,000. Ouch.

But here’s the good news – there are some clever little loopholes and strategies you can use to reduce or even avoid paying stamp duty altogether. Here are a few of my favourites:

1. Take advantage of the lower rates for mixed-use properties. If you’re buying a property that has both residential and commercial elements, you might be able to pay a lower rate of stamp duty. For example, if you’re buying a shop with a flat above it, you might be able to pay the residential rate on the flat and the commercial rate on the shop. It’s like getting two properties for the price of one!

2. Consider buying a property that’s below the stamp duty threshold. If you can find a commercial property that’s under £150,000, you won’t have to pay any stamp duty at all. It’s like a tax-free shopping spree!

3. If you’re buying a property with other people or businesses, consider splitting the ownership. This way, each owner’s share of the property might fall below the stamp duty threshold, meaning you all avoid paying the tax. It’s like a stamp duty party where everyone gets a slice of the cake!

4. Look into claiming relief for certain types of properties. If you’re buying a property that’s used for certain purposes, like a farm or a registered children’s home, you might be able to claim relief from stamp duty. It’s like a get-out-of-jail-free card for your tax bill!

5. Finally, if you’re feeling really adventurous, you could consider buying a property through a company or a trust. This can be a bit more complicated, but it can also offer some serious stamp duty savings. It’s like playing a game of tax chess – with the right moves, you can checkmate the taxman!

Of course, as with any tax loophole, there are rules and regulations you need to follow to make sure you’re staying on the right side of the law. That’s why it’s always a good idea to get some professional advice before you start playing fast and loose with the stamp duty system. A good tax advisor or solicitor can help you ensure you’re not inadvertently breaking any rules.

But if you’re savvy and you’re willing to do your homework, there are definitely ways to reduce or avoid paying stamp duty on your commercial property purchase. And who doesn’t love a good tax loophole?

So there you have it – a few simple strategies to help you keep more of your hard-earned cash in your pocket when you’re buying a commercial property.

How to avoid stamp duty on commercial property
Consider buying a property that's below the stamp duty threshold.

Commercial Property Stamp Duty Calculator

This commercial property stamp duty calculator provides you with an insight into your stamp duty liability when purchasing a non-residential or mixed-use property or land:

function calculateStampDuty($propertyValue) {
    $stampDuty = 0;

    if ($propertyValue <= 150000) {
        $stampDuty = 0;
    } elseif ($propertyValue <= 250000) {
        $stampDuty = ($propertyValue - 150000) * 0.02;
    } elseif ($propertyValue <= 925000) {
        $stampDuty = ($propertyValue - 250000) * 0.05 + 10000;
    } elseif ($propertyValue <= 1500000) {
        $stampDuty = ($propertyValue - 925000) * 0.1 + 41250;
    } else {
        $stampDuty = ($propertyValue - 1500000) * 0.12 + 93750;

    return $stampDuty;

// Example usage:
$propertyValue = 450000;
$stampDuty = calculateStampDuty($propertyValue);
echo "Stamp duty payable: £" . number_format($stampDuty, 2);

How to Sell Your Commercial Property Quickly and Easily

Unlock the Value of Your Commercial Property with Property Saviour: Your Fast-Track to a Hassle-Free Sale

Picture this: you’re sitting on a commercial property that’s been a reliable source of income for years, but now it’s time to move on. Maybe you’re looking to retire, or perhaps you’ve got your eye on a new investment opportunity. Whatever the reason, you know it’s time to sell. But the thought of going through the traditional sales process fills you with dread. The endless viewings, the tyre-kickers, the uncertainty of whether your buyer will come through with the cash… it’s enough to make you want to throw in the towel and stick with your property forever.

But what if I told you there was another way? A way to sell your commercial property quickly, easily, and with no hassle? That’s where Property Saviour comes in.

You see, Property Saviour isn’t your average buyer. We specialise in buying commercial properties directly from owners like you, and they’ve got the cash ready to go. No waiting around for mortgage approvals, no last-minute haggling over price. Just a fair offer and a quick sale.

Imagine being able to pick up the phone, give Property Saviour a call, and have a cash offer for your property within 24 hours. No need to tidy up for viewings, no need to answer endless questions from potential buyers. Just a straightforward, no-nonsense sale that puts money in your pocket and lets you move on to your next adventure.

And the best part? Property Saviour takes care of everything for you. From the initial valuation to the final sale, they handle all the details. No need to worry about solicitors, surveys, or any of the other headaches that come with selling a property. It’s like having your own personal property concierge, taking care of everything so you don’t have to.

But what about the price, I hear you ask? Surely you’ll get a better deal if you go through an estate agent? Well, not necessarily. While it’s true that you might be able to squeeze a slightly higher price out of a traditional buyer, you’ve got to factor in all the costs and delays that come with going down that route. With Property Saviour, you get a fair price based on the current market value of your property, and you get it quickly. No hidden fees, no nasty surprises.

So if you’re sitting on a commercial property that you’re looking to sell, why not give Property Saviour a call? With ourr fast, fair, and hassle-free approach, you could be putting money in your pocket and moving on to your next adventure in no time. Trust me, your bank balance (and your stress levels) will thank you for it.

At the end of the day, selling a commercial property is a big decision. But with Property Saviour, it doesn’t have to be a difficult one. So why not take the plunge and see how much easier your life could be with a quick, hassle-free sale? Your future self will thank you for it.

auction hammer

Property Saviour Price Promise

  • The price we’ll offer is the price that you will receive with no hidden deductions.
  • Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
  • These valuations or surveys result in delays and price reductions later on.
  • We are cash buyers.  There are no surveys.
  • We always provide proof of funds with every formal offer issued.

We'll Pay £1,500 Towards Your Legal Fees

  • No long exclusivity agreement to sign because we are the buyers.
  • You are welcome to use your own solicitor. 
  • If you don’t have one, we can ask our solicitors for recommendations.
  • We share our solicitor’s details and issue a Memorandum of Sale. 

Sell With Certainty & Speed

  • Our approach is transparent and ethical, which is why sellers trust us.
  • 100% Discretion guaranteed. 
  • If you have another buyer, you can put us in a contracts race to see who completes first.
  • Complete in 10 days or at a timescale that works for you.  You are in control.

Sell with certainty & speed

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