Did you ‘opt to tax’ your commercial property?

Philip Eagle

Tax Director

Stamp Duty Land Tax (SDLT) can be a significant cost to a purchaser of commercial property. As the owner, you can make your property more saleable by revoking the ‘option to tax’ after 20 years. This reduces the SDLT payable, making the property more saleable. The scenario below illustrates the savings.


Stephen owns a commercial building which he ‘opted to tax’ over 20 years ago to recover the input VAT on additional construction costs. He has been approached by a property developer and wants to sell the building.

The property is valued at £3million. If the ‘option to tax’ remains in place the purchaser would pay £169,500 in SDLT. By revoking the ‘option to tax’ the SDLT would reduce to £139,500, saving the purchaser £30K. This could be used by the vendor to make the property more saleable and even negotiate a better price.

How Hallidays can help:

Our tax experts can review your current tax arrangements to advise you on how you can make your property more saleable and potentially increase the disposal value of your property. Please contact our team on 0161 476 8276 or email

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