How is stamp duty calculated on a mixed use property?
Answered 11 March 2026
SDLT on Mixed Use Property
What the law says
The key distinction: Table A vs Table B
Under s.55 of the Finance Act 2003 (FA 2003), SDLT is calculated using one of two rate tables depending on the nature of the property acquired:
- Table A (higher rates) applies where the relevant land consists entirely of residential property
- Table B (lower rates) applies where the relevant land consists of or includes land that is not residential property — i.e. mixed use
As amended by s.127 of the Finance Act (inserting Table B into s.55 FA 2003), the Table B rates for non-residential or mixed transactions are:
| Relevant consideration | Percentage |
|---|---|
| So much as does not exceed £150,000 | 0% |
| So much as exceeds £150,000 but does not exceed £250,000 | 2% |
| The remainder (if any) | 5% |
These rates apply to the total consideration for the transaction — there is no apportionment between the residential and non-residential parts. The entire purchase price is taxed at the lower mixed-use rates.
Definition of "residential property"
The classification turns on s.116(1) FA 2003, which defines "residential property" as:
(a) a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for such use, and (b) land that is or forms part of the garden or grounds of a building within paragraph (a) (including any building or structure on such land), or (c) an interest in or right over land that subsists for the benefit of a building within paragraph (a) or of land within paragraph (b)
"Non-residential property" means any property that is not residential property. Crucially, any non-residential element in the transaction converts the whole to mixed use and triggers Table B:
"Table B applies if the land 'consists of or includes land that is not residential property'. Any non-residential element converts the land to mixed use."
The relevant date
The status of the property is assessed at the effective date, which is the date of completion (s.44 and s.119 FA 2003).
HMRC guidance / practice
Non-resident surcharge does not apply to mixed use
HMRC guidance confirms that the 2% non-resident surcharge (which applies on top of all other residential rates) does not apply to mixed transactions:
"The surcharge will not apply to purchases of non-residential property or mixed transactions."
Companies and the 17% higher rate
Where a company makes a mixed-use purchase and the apportioned price for a dwelling exceeds £500,000, the 17% higher rate applies to that dwelling, with the remainder taxed at non-residential rates. If relief from the 17% rate applies, the normal mixed-use rules apply to the whole transaction and SDLT is chargeable at the non-residential rates.
Key practical point from case law
The question of whether a property is "mixed use" is frequently litigated. Common disputed scenarios include paddocks subject to grazing agreements, garages let for storage, and infrastructure such as electricity networks or underground ventilation shafts. Whether such elements constitute non-residential property — and therefore trigger the lower Table B rates — depends on a careful analysis of all facts and circumstances at the effective date.
Citation sources
Introduction 1. This case concerns whether (1) The property acquired by Mr Brzezicki on 3 July 2020 comprised residential property only or a mixture of residential and non-residential property as defined in section 116(1) Finance Act 2003, and therefore, (2) whether the rate of stamp duty that should be paid by Mr Brzezicki should be the higher rate specified in Table A (residential property) of section 55 of Finance Act 2003 or the lower rate specified in table B (residential and non-residentia
INTRODUCTION 1. This appeal concerns Stamp Duty Land Tax (“SDLT”). On 20 December 2021 the appellants’ purchased a property. That was a land transaction for SDLT purposes They submitted an SDLT return on the basis that the subject matter of the land transaction was not entirely residential (in SDLT terms, it was “mixed use”). The relevance for SDLT is that a lower rate of SDLT is payable on mixed-use property than on property which is entirely residential. 2. The SDLT return declared tax due of
PART 8 SDLT and ATED Stamp duty land tax SDLT: calculating tax on non-residential and mixed transactions 127 1 Section 55 of FA 2003 (general rules on calculating the amount of stamp duty land tax chargeable) is amended in accordance with subsections (2) to (7). 2 In subsection (1) for “, (1C) and (2)” substitute “ and (1C) ” . 3 In subsection (1B)— a omit the words from “the relevant land” to “and”, b in Step 1— i for “Table A” substitute “ the appropriate table ” , ii for “that Table” substitu
Introduction 1. The form of the hearing was V (video). All parties attended remotely and the hearing was held on the Tribunal’s VHS platform. The documents to which we were referred are a Document Bundle of 262 pages, a Supplementary Document Bundle of 39 pages, an Authorities Bundle of 257 pages and the skeleton arguments of both parties. 2. We also heard oral evidence from Mr Paul Godfrey, a former director of the Appellant. 3. Prior notice of the hearing had been published on the gov.uk websi
The appellant should therefore be paying SDLT at the higher residential rate. 6. For the reasons given later in this decision we have concluded that although the grazing agreement was, in essence, in place at the date of completion, a consideration of all the facts and circumstances do not enable us to conclude that the impact of the grazing agreement was to take the paddock outside the definition of grounds, and so render the nature of the property non-residential. We have therefore dismissed t
At Budget 2020, the Government announced a 2% Stamp Duty Land Tax ("SDLT") surcharge on purchases of dwellings in England and Northern Ireland made by non-UK resident purchasers, including certain UK resident companies controlled by non-residents. The surcharge applies to purchases with an effective date on or after 1 April 2021. The surcharge applies on top of all other residential rates of SDLT, including the rates which apply to first time buyers, purchases of additional dwellings, purchases
s, with their own kitchens and bathrooms and on separate water and electricity meters. Moreover, the council charged them both separate council tax and they had separate postal addresses with Royal Mail, accordingly MDR should apply if a mixed-use application between residential and non-residential is not applicable. HMRC’S Submissions The legislative position 49. The law on SDLT is mainly set out in Part 4 of FA 2003 with SDLT charged on a ‘land transaction’ under Section 42 of FA 2003. 50. HMR
Preliminary 1. The form of the hearing was V (video). All parties attended remotely, including several observers from HMRC, and the remote platform was the Tribunal’s Video Hearing Service. The documents to which I was referred are a Document Bundle of 232 pages, an Amended Supplementary Bundle of 126 pages, a document entitled “Rights, easements, covenants, restrictions or other matters affecting the property” comprising seven pages, an Authorities Bundle of 337 pages and the skeleton arguments
Introduction 1. This appeal concerns the appellants’ liability to stamp duty land tax (“SDLT”) on the purchase of a property known as Hall Farm, near Congleton, Cheshire (“the Property”). The sole issue is whether the Property was wholly residential property for the purposes of SDLT. If so, SDLT was chargeable at the residential rate of tax. The appellants contend that several fields included in the Property were non-residential property. If that is right, SDLT was chargeable at the lower, non-r
lings each with an attributable cost of less than £500,000. The £1 million acquisition is a higher threshold interest, so the 17 per cent higher rate applies and this acquisition must be returned separately. The acquisition of the five other properties is charged at the appropriate non-residential rate as the primary transaction includes six or more dwellings. A company makes a mixed use purchase where the apportioned price for a dwelling is over £500,000. If the 17 per cent rate applies, the d