Mixed-Use SDLT: Could Your Property Qualify and Reduce Your Stamp Duty?

If you’ve recently purchased a property—or are in the process of buying—you might be paying more Stamp Duty Land Tax (SDLT) than necessary.

Properties that combine residential and non-residential elements may be classified as mixed-use and taxed at lower commercial SDLT rates instead of higher residential rates.

What Is a Mixed-Use Property?

A mixed-use property includes both residential parts (such as houses or flats) and non-residential or commercial parts, for example:

• A flat above a shop
• A house with an attached office or surgery
• A residential property with land used for farming or business purposes

A mixed-use property includes both residential parts (such as houses or flats) and non-residential or commercial parts, for example:

How Much Could You Save?

Residential SDLT rates can be as high as 12%, while mixed-use properties are taxed at a maximum of 5%.

For example:

• On a £500,000 residential property, SDLT could exceed £15,000
• The same value as a mixed-use property might incur less than half that amount

This difference reflects the tax rules set by legislation, which depends on correct property classification.

Is Your Property Mixed-Use?

Determining if a property qualifies as mixed-use can be complex. The rules can be difficult to interpret, even for professionals like solicitors and conveyancers.

Specialist advice may be useful in reviewing your property and SDLT position.

Multiple Dwellings Relief (MDR)

If your property contains more than one residential unit—such as two flats or a main house with a self-contained annex—you might also be eligible for Multiple Dwellings Relief.

Combining MDR with mixed-use classification can further reduce the amount of SDLT payable.

Time Limits for SDLT Refunds

SDLT must normally be paid within 14 days of completion. If you’ve already paid, you usually have up to 12 months from the filing date to apply for an amendment if you believe you have overpaid.

If you are still purchasing, identifying the correct SDLT treatment before completion can affect how much tax is due initially.

How to Proceed

If you think your property may qualify as mixed-use or you are unsure about SDLT treatment, it can be helpful to seek advice from specialists who focus on SDLT matters.

They can review your property details and help clarify whether a refund or reduction may be applicable.

If you’d like more information or a preliminary assessment, please get in touch using the contact details on this site.