Chris Thorpe looks at whether some land bought with a house will necessarily be subject to the residential rates of stamp duty land tax.
The disparity between residential and non-residential (including mixed-use) land for stamp duty land tax (SDLT) rates is such that the latter makes for a far more attractive purchase.
Non-residential land rates are capped at a maximum of 5% on amounts above £250,000, whereas residential rates are up to 12% on values above £1.5 million. Residential rates can be as high as 15% for properties worth over £500,000 when the purchaser is a corporate body.
Furthermore, surcharges of 2% and 3% are in place for non-residents and additional house purchasers or corporate bodies, respectively. Therefore, if a property has some part of it which is non-residential, the whole property may be described as mixed and thus