SDLT and mixed-use properties
By Ali Jaw ·
Case study
Bill and Jane buy an equestrianproperty comprising a house, stables and paddocks of three acres from which theyrun their business providing riding lessons and liveries. The property cost£1.2 million. As the equine facilities are used commercially, the property is amixed-use property and the commercial SDLT rates apply. Therefore, SDLT of£49,500 is payable.
Had they not used the equinefacilities commercially, HMRC would treat the property as a residentialproperty. Assuming that it is their main residence, the SDLT payable at theresidential rates would be £63,750 – £14,250 more than for a mixed-use propertycosting the same.