Buying commercial property is one of the largest decisions a business owner or investor will make. The tax position is settled at the point of purchase, so getting the structure and the paperwork right before exchange can save far more than it costs. We work alongside your solicitor, surveyor and lender so that the tax points are dealt with in good time.
Choosing the right ownership structure
Commercial property can be held personally, jointly, through a limited company, through a partnership or LLP, or in some cases within a pension scheme such as a SIPP or SSAS. Each route has different consequences for income tax or corporation tax on the rent, capital gains tax on a future sale, inheritance tax and the extraction of profits. We model the options against your plans for the property and your wider finances.
Stamp Duty Land Tax
Non-residential and mixed-use property is charged at the non-residential SDLT rates, which are generally lower than the residential rates. We review whether a purchase is genuinely mixed-use, whether any reliefs apply, and how the price should be apportioned where a transaction includes more than one element.
VAT and the option to tax
Many commercial buildings are subject to an option to tax, which makes the sale standard-rated. Where a let property is bought as a going concern, the transaction may fall outside the scope of VAT altogether, provided the strict transfer of a going concern conditions are met before completion. A mistake here can add 20% to the price or create an unexpected liability, so we check the position early.
Capital allowances
Fixtures such as heating, lighting, lifts and air conditioning can qualify for capital allowances, but a buyer can usually only claim if the seller has pooled the expenditure and a fixed value has been agreed, normally by a joint election. We make sure this is addressed in the purchase contract rather than afterwards, when it is often too late. We also identify any Structures and Buildings Allowance available on qualifying construction costs.
How we help
- Structuring advice before you make an offer
- SDLT calculations, reliefs and return review
- VAT, option to tax and going concern checks
- Capital allowances review and fixtures elections
- Cash flow and funding projections for lenders
- Ongoing accounts and tax compliance once the property is held
Related services and insights
- Property Purchase Advisory
- Capital Gains Tax Planning
- Business Restructuring
- Property Tax Planning & Consultancy
- Tax update June 2026: SDLT group relief and BADR letters
Speak to us before you exchange
The earlier we are involved, the more options remain open. Book an appointment to discuss your purchase.
