Commercial mortgage - stamp duty

[JCKST1]

Hi.

I have been offered a couple of commercial properties and thinking of taking the jump to the commercial side of things and look at selling my residential BTL later down the line.

My query is regarding the additional stamp duty which you pay on a second home/BTL. I know on a commercial property you dont pay the additional SD but if I had a couple of commercial properties rented out (residential BTL sold on) and I wanted to move home would I have to pay the additional stamp duty on my next home purchase with me owning commercial property or is the rule the same and I just pay the normal amount?

[Mortgage_tom]

There are different rates for Non-Residential Property & as far as I understand the additional rate does not apply. Buying a shop with a flat above would fall under this, as an example cost of £180k there would be only £600 stamp duty. Up to £150k is £0.

As for additional rate on your own residence, there is a rule applying to your "designated main residence". I don't know the full details, but something about if you have sold your previous main residence in the last three years and buy another the additional rate would not apply. I'm not sure how it works if you have built up a property portfolio before buying your first main residence.

edit, apologies if you already know this. But be aware that when your commercial is empty you are responsible for paying the business rates. A large void can be very expensive. (I hoping this might get changed in a future budget)

Edited by Mortgage_tom on Sunday 28th October 10:11