Sarah Bradford examines when HMRC will accept that a property is uninhabitable and the findings of the tribunal in the Mudan case.
There are different rates of stamp duty land tax (SDLT) for residential properties and for non-residential and mixed properties. In addition, a supplement of 5% applies to the purchase of second and subsequent residential properties. The addition of the supplement can make buying residential properties for investment (for example, as a buy-to-let) expensive. By contrast, there is no supplement on the non-residential rates.
Consequently, there may be significant cost savings to be had if the non-residential or mixed rates apply rather than the residential rates.
Residential rates and non-residential SDLT rates
The residential rates applying now and from 1 April 2025 are shown in the tables below.
