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HMRC’s approach to mixed-use claims for SDLT

17 October 2018 / Patrick Cannon
Issue: 4668 / Categories: Comment & Analysis , News

Keeping it quiet

Key points

  • SDLT rate and threshold changes have resulted in buyers of dwellings with large areas of land seeking to claim for a mixed-use purchase.
  • However HMRC appears to have changed its approach to mixed-use claims and may not be following its own published guidance.
  • HMRC’s guidance distinguishes between land that ‘is needed for the reasonable enjoyment of the dwelling’ and land that is not.
  • A good test is whether the loss of the land in question would be a substantial deprivation to the reasonable enjoyment of the dwelling house judged objectively.

Since the introduction of stamp duty land tax in December 2003 and until about 12 months ago HMRC accepted that when a dwelling was purchased with land in excess of what was required for the reasonable enjoyment of the building the excess was treated as non-residential property. The effect of this was beneficial to the buyer because they...

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