SDLT rates for non-residential or mixed use properties

[mr-woo1]

Hello all,

I was reading the HM Revenue website about mixed use properties and SDLT.

I have been looking at a residential property currently used as a Bed and Breakfast with part set aside for owners accomodation.
It is being sold as an active going concern and I wondered if it would qualify as 'mixed use' for the purpose of calculating SDLT?

If it were to qualify and both portions fell under the 250,000 threshold then it would be very useful paying both portions at 1% than the whole lot at 3%

Many thanks

[section 44]

There won't be two separate transactions for the purposes of the £250k band. It’s a single property.

[mr-woo1]

Yes its a single property and a single transaction.

My query was more if mixed use properties had each 'use' assessed independantly

Mixed use

A property might be classed as part residential and part non-residential - for example a shop with a flat above
.................................

Mixed use purchase example

A freehold property in a disadvantaged area is bought for a total of £300,000. It consists of a shop below and a flat above. It's worked out that the flat - which is only used for residential purposes - is 40 per cent of the whole property. So the cost of the flat is £120,000 and the cost of the shop is £180,000.
There's no SDLT to pay on the flat because Disadvantaged Areas Relief is available for residential property transactions of £150,000 or less.

But there will be SDLT to pay on the shop because:

* Disadvantaged Areas Relief isn't available for non-residential properties
* the amount paid for the shop element is above the threshold for non-residential properties (£150,000)

So SDLT is chargeable at the normal rate. In this example it's payable on the £180,000 paid for the shop at the rate of 1 per cent.

I appreciate this example includes reference to DA Relief, but each 'use' is still being assessed independantly which was what I was interested in.

[section 44]

My query was more if mixed use properties had each 'use' assessed independantly

No it isn't and even if they were, they would be linked transactions such that the applicable rate of SDLT would be determined by reference to the agrregate chargeable consideration.

[zelwackx]

SDLT is a tax charge on transactions relating to UK land and buildings. There are certain exemptions from SDLT (see below). The SDLT regime imposes a system of self assessment in respect of notifiable 'land transactions'. A document effecting or evidencing a land transaction may generally not be registered at the Land Registry unless it is accompanied either by a certificate from Revenue & Customs (form SDLT5) or a self-certificate by the purchaser (or lessee), together with the correct payment of duty.

[section 44]

It reads like spam but yet there is no website link. What's going on?