SDLT—residential property vs non-residential property

The following Tax practice note provides comprehensive and up to date legal information covering:

  • SDLT—residential property vs non-residential property
  • What is residential property?
  • Used as a dwelling or suitable for use as a dwelling
  • In the process of being constructed or adapted
  • Gardens or grounds
  • What is non-residential property?
  • Application of the rates of SDLT to mixed use property
  • Which rates apply to mixed use property?
  • HMRC guidance
  • Application in practice
  • More...

SDLT—residential property vs non-residential property

The amount of stamp duty land tax (SDLT) charged in relation to a chargeable transaction is a percentage of the chargeable consideration for the transaction. The percentage is determined by reference to whether the relevant land:

  1. consists entirely of residential property, in which case the rates, and related calculation method, in Table A (titled 'Residential) apply, or

  2. consists of, or includes, land that is not residential property (referred to as non-residential property in this Practice Note), in which case the rates, and related calculation method, in Table B (titled 'Non-residential or mixed') apply

Significant changes were made to the rates of SDLT applicable to residential property and how the charge is calculated at Autumn Statement 2014. The rates and how the charge is calculated for non-residential property was reformed at Budget 2016. For further details of the various rates of SDLT, see Practice Note: Rates of SDLT.

Tables A and B are set out in section 55(1B) of Finance Act 2003 (FA 2003), see Practice Note: Rates of SDLT. There are two versions of Table A. The second version is set out in FA 2003, Sch 4ZA, Part 1, para 1(2) and applies when a non-natural person acquires residential property or when an individual acquires a second residential property where an only or main residence is not being replaced. For more detail,

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