Lead forensics pixel

SDLT change for mixed use buildings

HMRC’s published guidance on the application of the 3% higher rate of Stamp Duty Land Tax (SDLT) has been updated. The higher rates of SDLT were introduced on 1 April 2016 and apply to purchases of additional residential property such as buy to let and second homes.

At the time the new higher rates were introduced, HMRC confirmed that where there was a purchase of mixed use buildings consisting of residential and non-residential properties that the 3% higher rate of SDLT applied to the dwelling element.

HMRC’s guidance on this issue was updated on 13 November 2020. The new guidance makes it clear that HMRC’s view has changed and that the 3% surcharge will not apply to the dwelling element. The guidance adds the caveat that the non-residential element of the transaction is neither negligible nor artificially contrived.

This change could allow affected purchasers to claim back any overpaid SDLT on mixed use, multiple dwelling transactions from HMRC within the legal time limits. HMRC’s guidance also suggests that purchasers can now make a non-statutory clearance application in the event of uncertainty over a transaction. 

Source: HM Revenue & Customs | 08-12-2020

Contact Us Today

Specialist Knowledge for Every Sector

We understand the unique challenges and opportunities of your industry. From education to technology, healthcare to media, our sector experts are ready to support you with practical insights and strategic advice

Discover How Streets

Can Support You

At Streets, we go beyond traditional professional services, working as a trusted partner to businesses, charities, and individuals. We steer clear of the generic, one-size-fits-all approach – our focus is on helping you achieve your goals, whether that means ensuring sustainability, enhancing efficiency, or improving decision-making.