Mixed-Use Stamp Duty Relief: Who Qualifies and How to Claim

When you buy a property, one of the biggest costs is Stamp Duty Land Tax (SDLT). But if your purchase qualifies as mixed-use, you could save thousands of pounds compared to paying the higher residential rates. At SCA Tax, we help buyers work out if their transaction is eligible - whether that’s before completion (so you pay the right amount upfront) or after completion (where we can review your case and claim a refund if you’ve overpaid).

What is a Mixed-Use Property?

A property is treated as “mixed-use” when it contains both residential and non-residential elements. Common examples include:

• A house with a shop or office attached.
• A farmhouse with agricultural land.
• Flats above a retail unit.
• Homes with land that is genuinely used for non-residential purposes.

Because mixed-use property isn’t purely residential, it is taxed at the lower non-residential SDLT rates.

Why Does It Matter?

Residential SDLT can quickly become very expensive, especially with surcharges for second homes or high-value properties. In contrast, mixed-use transactions are taxed at non-residential rates:

• 0% on the first £150,000
• 2% on the next £100,000
• 5% on the rest

This can make a dramatic difference to your SDLT bill. For many clients, the savings run into tens of thousands of pounds.

Who is Eligible for Mixed-Use Relief?

Eligibility depends on the facts of your purchase. HMRC look closely at:

• The current use of the property (is part genuinely non-residential?).
• Whether any land is part of the garden or grounds of the dwelling, or whether it is used for business/agriculture.
• Planning permissions, leases, and legal restrictions.
• The physical layout and whether parts of the building are suitable for use as a dwelling.

It’s not always straightforward. A small office in a converted garage, for example, may not be enough. Each case needs to be assessed carefully against SDLT rules and case law.

Getting Advice Pre-Completion

If you’re still in the process of buying, SCA Tax can review your transaction before contracts exchange. That way, you:

• Pay the correct amount of SDLT at completion.
• Avoid overpaying and then having to claim a refund.
• Have peace of mind that your position is fully supported by evidence and professional advice.

Claiming a Refund After Completion

Already completed your purchase? You may still be entitled to a refund if:

• You paid SDLT at the residential rates when your property should have been classed as mixed-use.
• The property included non-residential land or buildings that were overlooked at the time.

Our team reviews the details of your transaction and, if you are eligible, prepares and submits a refund claim to HMRC on your behalf.

Why Choose SCA Tax?

Mixed-use claims are complex, and HMRC often challenge them. With SCA Tax you benefit from:

• Specialist expertise in SDLT reliefs and refund claims.
• Evidence-based reviews to strengthen your position.
• End-to-end support, whether you need pre-completion advice or a refund claim.

Next Steps

If you’re buying a property and want to know if mixed-use relief applies, or if you’ve already completed and suspect you overpaid SDLT, contact SCA Tax today. We’ll assess your case quickly and give you clear advice on your options.