Property Taxes: Stamp Duty Land Tax and Company Ownership

Buying property involves more than simply finding the right home or investment. Understanding the taxes that apply before and after a purchase is an important part of planning ahead and avoiding unexpected costs. Whether you are purchasing property as an individual or through a company, different tax rules, rates and reliefs may apply. This 2026/27 guide explains the key Stamp Duty Land Tax (SDLT) rules, highlights the reliefs available to some buyers, and outlines the additional tax considerations for companies that own residential property.

Buying Property as an Individual – Stamp Duty Land Tax

If you buy land or buildings in the UK, you will pay Stamp Duty Land Tax in addition to the cost of the property. The rate of Stamp Duty Land Tax depends on a range of factors including where the property is situated and whether it is residential or non-residential. Reliefs exist for first-time buyers but there are higher rates for those buying properties when they already own another dwelling. The bands and rates applicable from 1 April 2026 are as follows:

For land and buildings in England and Northern Ireland (Stamp Duty Land Tax):

A surcharge applies if you buy an ‘additional’ residential property, meaning you own more than one. The surcharge applicable is 5%.

Tip: First-Time Buyer relief affects a 0% rate on the first £300,000 of residential property purchases, provided that conditions are met and the price is not over £500,000.

Buying and Holding Property in a Company 

Stamp Duty Land Tax 

Companies (and other similar business structures) are also subject to Stamp Duty Land Tax on property purchases and, where residential property is concerned, the rates can be higher than those shown for individuals.

Annual Tax on Enveloped Dwellings 

If a company (or other similar business structure) owns UK residential property that is valued at more than £500,000, the company may need to pay Annual Tax on Enveloped Dwellings in addition to any Stamp Duty Land Tax at acquisition and its annual corporation tax bill. There are some reliefs and exemptions that may apply but this is a complex area.

Please speak to us about companies and property transactions.

You can download our full guide here: Private Client Tax Rate Guide 2026/27

This guide provides an overview of the key UK property tax rules relating to Stamp Duty Land Tax (SDLT), together with the main tax considerations for residential property held through a company. It is intended as a general guide only and does not cover every aspect of the legislation or every circumstance that may affect your property transaction or investment. Property taxation can be complex, particularly where multiple properties, companies, reliefs or exemptions are involved. No action should be taken based on this guide alone. Please contact us before proceeding with a property purchase or if you would like tailored advice on the tax implications of your property ownership or investment plans.