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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Scope: when is Stamp Duty Land Tax (SDLT) chargeable: higher rate charge for acquisitions of residential property by certain non-natural persons FA03/S55/SCH4A: meaning of ‘qualifying trade’

For these purposes a trade will qualify if it:

  • involves offering the public the opportunity to make use of, stay in or otherwise enjoy a significant part of the interior of the dwelling as customers of the trade on at least 28 days in each calendar year; and
  • is carried on a commercial basis and with a view to the realisation of profits.

For the purposes of this relief the trade is to be considered in terms of the actual commercial activities undertaken. These activities must be carried on so as to generate income, and with a view to profit.

For the single-dwelling interest to be exploited as a source of income, that income must be related to the dwelling and not be purely incidental to a visit to the dwelling. For example, income arising from a business