Not all property is equal when it comes to stamp duty land tax (SDLT). Higher rates apply to residential properties than to non-residential properties, with a 3% supplement applying to second and subsequent residential properties costing more than £40,000. Where a property comprises mixed residential and non-residential use, the lower non-residential rates apply.
The difference in rates has paved the way for speculative refund claims where the residential rates were charged on the basis the non-residential rates should have applied, and the tribunals have been busy hearing these cases. Making such a claim simply on the basis that it might be worth giving it a go is generally a waste of time and money.
Residential property
For (SDLT) purposes, a residential property is defined as:
- a building suitable for use as a dwelling, or in the process of being constructed or adapted for such use;
- land that is or forms part of the garden or grounds of such a building (including any building or structure on that land); or
- an interest in or right over land that subsists for the benefit of such a building or land.
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