IMC Taxation Practice Test 2025 - Free Taxation Practice Questions and Study Guide

The correct rate applicable to the purchase price of commercial properties over £250,000 is indeed 5%. This rate is part of the structure of Stamp Duty Land Tax (SDLT) that applies specifically to non-residential properties, including commercial real estate. The rate is thus set to reflect a portion of the value at which the property is being transferred.

For commercial properties, SDLT is charged on a tiered basis, meaning that different portions of the purchase price are taxed at different rates. However, properties purchased for amounts exceeding the £250,000 threshold trigger the application of the 5% rate, emphasizing the government's approach to tax based on property value, with higher values attracting higher tax rates.

It’s also essential to note that rates can differ based on various property categories and specific circumstances, including incentives or changes introduced by the government, but for standard transactions involving commercial properties, the 5% rate is straightforward for properties valued over £250,000.