Yesterday's Budget saw new rates being introduced for commercial stamp duty. Read Simon East from our commercial property team's thoughts on how this will affect our clients.
"Most of our commercial clients will welcome the Chancellor’s announcement in the Budget that the way in which SDLT (stamp duty) is calculated for commercial and mixed-use properties is being brought in line with the residential sector, ending the ‘cliff-edge’ approach whereby the whole of the purchase price was taxed at the highest rate applicable. From 17th March the SDLT on commercial and mixed-use property will be taxed at the applicable rate only for the part of the purchase price which falls within that band. This will see the duty fall for all such properties below £1 million, although more expensive properties will see higher taxes. There are also rate rises for leases with the highest rents but not many lease transactions are likely to be affected.