I’m looking at purchasing a property in Wiltshire and wondered if non-residential stamp duty land tax (SDLT) rates might apply. The property is an old thatched cottage. The results of an initial survey show there is asbestos flooring in the kitchen and there is structural damage to part of a wall where a tree fell on it during heavy storms. The survey also indicated some damp present in the lounge. What should I do to check if this property would be classed as inhabitable according to HMRC? 

Arthur Weller replies: 

If you look at HMRC’s Stamp Duty Land Tax Manual at SDLTM00385, you can see HMRC's view. They were supported by a recent court case (Mudan & Anor v HMRC [2025] EWCA Civ 799). You may get 'some mileage' out of the asbestos in the kitchen, but most likely HMRC would not accept your claim that the property is 'uninhabitable'. You should be able to find a number of firms willing to assure you that they can get this through without paying residential SDLT rates, but just because of their claims, that doesn't mean that they are correct.