Commercial Property Tax Rate Card
Corporation tax, CGT, the 2027 property income rise and VAT, for commercial landlords.
Corporation tax (company landlords)
| Band | Rate |
|---|---|
| Small profits (up to 50,000) | 19% |
| Marginal (50,001 to 250,000) | 26.5% on the slice |
| Main rate (over 250,000) | 25% |
Capital gains on disposal
| Who / relief | Rate |
|---|---|
| Individual, basic rate | 18% |
| Individual, higher rate | 24% |
| Company (corporation tax on gain) | Up to 25% |
| Business Asset Disposal Relief (from 6 Apr 2026) | 18% |
Commercial uses the main CGT rates, not the residential-specific ones.
Income tax on rent (individuals)
Basic rate (now, until Apr 2027)
20%Higher rate (now, until Apr 2027)
40%Additional rate (now, until Apr 2027)
45%Property income from 6 April 2027
22 / 42 / 47%The Section 24 finance-cost restriction does NOT apply to commercial: loan interest is fully deductible.
VAT
Default treatment of rent and sale
ExemptIf you opt to tax
20%Option to tax commitment
20 yearsCooling-off to revoke
6 monthsNew commercial building sale
Standard-rated 3 yrsCommercial
Incl. Autumn Budget 2025
Source: HMRC. The 2027 property income rise is announced for 6 April 2027. Verify before filing.