Buying Property Through a Limited Company: Stamp Duty and the Legal Side

When a limited company buys a home in England, it pays Stamp Duty at the higher rates: 5% more than the standard rate in every band, even if it is the company's first property. On a £250,000 property that is £15,000. Above £500,000, a company can pay a flat 17% of the price unless a relief applies, such as the relief for a property rental business.

Checked 20 October 2026.

Stamp Duty when a company buys

These are the rules for residential property in England and Northern Ireland. This is general information, not tax advice.

• The higher rates apply. A company pays the higher rates on any residential property bought for £40,000 or more. Unlike an individual, it pays them whether or not it already owns a property.
• No first-time buyer relief. That relief is only for individuals buying their own home.
• The 17% rate. Where a company buys a residential property for more than £500,000, Stamp Duty can be charged at a flat 17% of the whole price. Relief from the 17% rate is available in set cases, for example where the property is used in a property rental business or bought by a property developer. Where a relief applies, the higher rates are usually charged instead. Each relief has conditions, and some can be withdrawn if the use changes within three years.
• Companies outside the UK. A company that is not UK resident, or is controlled by people who are not, usually pays a further 2% surcharge.

The higher rates by band are:

• Up to £125,000: 5%
• £125,001 to £250,000: 7%
• £250,001 to £925,000: 10%
• £925,001 to £1.5 million: 15%
• Above £1.5 million: 17%

Two worked examples

• A £250,000 flat bought by a company: 5% on the first £125,000 (£6,250) plus 7% on the next £125,000 (£8,750), so £15,000.
• A £600,000 house bought by a company: £102,000 at the 17% rate. If a relief from that rate applies, such as for a property rental business, the higher rates give £50,000 instead.

Our higher-rates Stamp Duty calculator works out the higher rates for your price, and our guide to Stamp Duty rates and reliefs covers the rules for individuals.

Annual Tax on Enveloped Dwellings

A company that owns a UK home worth more than £500,000 may also have to pay the Annual Tax on Enveloped Dwellings (ATED) each year. Reliefs exist, including for property let to people unconnected with the company, but the company usually still has to file a return to claim them.

What changes in the conveyancing

The legal steps are the same as any purchase: searches, enquiries, exchange and completion. What changes is who the buyer is.

• The company must exist before exchange. The company signs the contract, so it has to be set up first, with a bank account the purchase money can come from.
• Checks on the company. We check its record at Companies House, its directors, and the people who own or control it. Identity and anti-money laundering checks cover those people as well as the company.
• Where the money comes from. If the directors lend or invest money into the company for the deposit, we check the source of those funds as we would for any buyer.
• Signing. The contract, the transfer and the mortgage deed are signed for the company in the way company law requires, usually by two directors, or by one director with a witness.
• The lender's rules. Many lenders who lend to companies want a company set up only to hold property, often called a special purpose vehicle. Many ask the directors for personal guarantees, which means the directors can be personally liable for the debt, and some require each guarantor to get independent legal advice before completion. We are not mortgage brokers, so a broker can tell you which lenders fit.
• After completion. We register the company as owner at HM Land Registry, and the lender's charge has to be registered at Companies House within 21 days of the date the charge was created.

Moving a property you already own into a company

This is a sale from you to the company, and it has its own tax consequences. Stamp Duty is usually charged on the property's market value, and Capital Gains Tax may be due from you as the seller. Speak to an accountant before you take this step.

What it costs

Our instant online quote does not price purchases by a company. Contact us with the details of the purchase. We act on purchases through a limited company, and give you a written quote before you instruct us, with our fee, the VAT and each third-party cost shown separately. Stamp Duty and the HM Land Registry fee are set by government and paid on top.

How long it takes

A freehold purchase typically takes 8 to 10 weeks from instruction to completion and a leasehold one 10 to 12 weeks. Timescales depend on the chain, the searches and the lender. A company purchase can take longer if the company is not set up, or its bank account is not open, by the time we start.

Questions people ask

Do companies pay Stamp Duty?

Yes. A company pays Stamp Duty on property it buys in England and Northern Ireland, at the higher rates on residential property of £40,000 or more, and possibly the 17% rate above £500,000.

Can a limited company get first-time buyer relief?

No. First-time buyer relief is only for individuals buying a home to live in.

Does a company pay the higher rates on its first property?

Yes. For a company, the higher rates do not depend on owning another property. They apply to residential purchases of £40,000 or more.

Is it worth buying property through a limited company?

That depends on your income, your plans and the tax position, and we cannot advise on it. Speak to an accountant or tax adviser before you buy.

Can a company get a mortgage?

Yes. Some lenders offer buy-to-let mortgages to limited companies, usually with personal guarantees from the directors. A mortgage broker can compare them.

Talk to us

If you are buying through a company, contact us with the details of the purchase. Our buy-to-let conveyancing page explains how we handle investment purchases, and our guide to buying a second home covers buying in your own name.

Sources

Stamp Duty for companies and the 17% rate: gov.uk/guidance/stamp-duty-land-tax-corporate-bodies

The higher rates: gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

Stamp Duty rates: gov.uk/stamp-duty-land-tax/residential-property-rates

Annual Tax on Enveloped Dwellings: gov.uk/guidance/annual-tax-on-enveloped-dwellings-the-basics

Registering a company charge: gov.uk/guidance/register-a-charge-mortgage-for-a-limited-company

This is general information about a company buying residential property in England, not tax, financial or legal advice on your purchase. Tax rules change and have conditions; check them with HMRC or an accountant.