Frequently Asked Questions
What counts as mixed use for SDLT purposes?
A mixed-use property contains both residential and non-residential elements. Common examples include a flat above a shop, a farmhouse with agricultural land, a pub with living accommodation, or a house with a commercial outbuilding. HMRC requires a genuine commercial element — it cannot be merely nominal.
What are examples of mixed use property in the UK?
Typical mixed-use properties include: flats above shops or restaurants, rural properties with agricultural buildings or land, doctor's surgeries or dental practices with residential quarters, guesthouses or B&Bs, hotels with owner accommodation, and properties with planning permission for commercial use on part of the land.
How much SDLT can you save on a mixed use property?
Significant savings are possible. For example, on a £1 million property: residential SDLT would be £41,250, but commercial (mixed-use) SDLT would be £24,500 — a saving of £16,750. On higher-value properties the saving is even greater because the top residential rate of 12% is avoided entirely.
What is HMRC's guidance on mixed use SDLT?
HMRC SDLT Manual at SDLTM00370 sets out guidance on non-residential and mixed-use transactions. HMRC scrutinises mixed-use claims carefully. The non-residential element must genuinely exist at the date of completion, not be a contrived arrangement, and must be substantive rather than nominal. Professional advice is strongly recommended.
What are the risks of claiming mixed use SDLT?
HMRC can open an enquiry and challenge mixed-use claims if the commercial element is deemed nominal or artificial. If a claim is disallowed, interest and penalties may apply on top of the additional SDLT. Always obtain a professional survey and legal opinion confirming the mixed-use nature before filing your SDLT return.