Some residential properties can avoid the extra 3% SDLT!

An issue we encounter often is whether what you are buying is classed as commercial or residential for Stamp Duty Land Tax purposes...

By Debbie Franklin, Director of Tax and property tax specialist

An issue we encounter often is whether what you are buying is classed as commercial or residential for Stamp Duty Land Tax purposes. It matters partly because different rates are applicable for each and the extra 3% rate only applies to residential property.

If the property has a non residential element then it will be charged at the non residential rates – no extra 3%! This is often seen in the purchase of a property with say a shop of the ground floor and flats above. There is no need to split the consideration between the two elements.

Furnished Holiday Lets and House in multiple occupation are residential and do attract the extra 3% rate if applicable.

Bare land with residential planning permission is commercial unless construction work has started.

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