Companies buying residential property
A company buying residential property is generally charged the higher rates from the first pound, with no minimum price before the surcharge applies, and in defined circumstances a flat higher rate applies above a value threshold instead.
No minimum threshold
Where an individual buying an additional property only comes into the surcharge once the price reaches a minimum figure, a company generally does not get that let-off. The higher rates apply to a company purchase of a dwelling from the first pound, whatever the price. The reasoning is that a company has no main residence to replace, so the exemptions built around home movers do not fit it. The same broad approach applies across the regimes: in Scotland a company purchase attracts the Additional Dwelling Supplement, and in Wales the higher-rate table applies.
The flat rate above a value threshold
In England and Northern Ireland a flat rate of 17% can apply to a company purchase of a dwelling above a set value threshold, instead of the banded higher-rate table. It applies in defined circumstances only. Reliefs from the flat rate exist for genuine commercial uses, including property rental businesses, property developers and traders, and properties made available to the public, and those reliefs can be withdrawn if the qualifying use stops within a set period. Whether a purchase falls inside or outside the flat rate is a question of the facts of the acquisition and the intended use.
What else attaches to corporate ownership
The purchase tax is rarely the whole picture. Companies holding high value residential property can face an annual charge on that holding, with its own reliefs mirroring those above, and disposals, financing and the extraction of profits all sit under different rules from those that apply to an individual. The announced annual surcharge on high value homes also falls on owners rather than occupiers, which includes corporate owners. A decision to hold residential property through a company turns on all of these together rather than on the purchase tax alone.
Our calculator does not model corporate purchases
The calculator on this site covers standard residential freehold purchases by individuals. It does not model company purchases, the flat rate, the reliefs from it, linked transactions, multiple dwellings, mixed-use property or non-natural persons generally, and it should not be used to estimate the tax on any of them. The figures it produces for an individual buyer will understate a corporate purchase in most cases and overstate it in some. For a company acquisition, work from HMRC's guidance for the relevant regime and take advice from your solicitor before committing.
Key points
- Companies generally pay the higher rates from the first pound, with no minimum price threshold.
- A flat rate of 17% can apply above a value threshold in defined circumstances, subject to reliefs.
- This site's calculator does not model corporate purchases: use HMRC guidance and your solicitor.
Common questions
Does the minimum price rule protect a company buying a low value property?
No. The higher rates generally apply to a company purchase from the first pound, with no minimum price before the surcharge starts.
When does the flat rate apply instead of the higher-rate table?
Above a set value threshold in defined circumstances, with reliefs for qualifying commercial uses. Whether it applies depends on the facts of the acquisition.
Can I use this site's calculator for a company purchase?
No. It models standard residential purchases by individuals only. Use HMRC's guidance for the relevant regime and take advice from your solicitor.
Written by StampBand Editorial, published by Inventum. Rates verified 9 August 2026 against HM Revenue & Customs, Revenue Scotland and the Welsh Revenue Authority.