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HMRC internal manual

Stamp Duty Land Tax Manual

Processing: Further guidance for completing forms SDLT1, SDLT3 and SDLT4: Further guidance for questions 1 and 16 SDLT1, type of property or lease

This is questions 1 and 16 on the paper SDLT1, question 1 of SDLT3 and question 8 on the SDLT4, described as 1.1 or 1.16

You must answer this question with one of four options, 01, 02, 03 or 04

01 Residential property is defined as:

  • a building used or suitable for use as a dwelling, or is in the process of being constructed or adapted for use as a dwelling
  • the garden or grounds of such a building, including structures on the garden or grounds (see SDLTM00440 to SDLTM00480)
  • an interest or right in or over land that benefits a dwelling, for example a right of way to access the dwelling.

Residential property is defined at FA03/S116, which also provides that anything that is not residential property is non-residential property.

02 Mixed where only part of the property is residential.

03 Non-residential where the whole of the property is not residential. You must show as non-residential any transaction involving the transfer of a major interest in (or grant of a lease over) 6 or more separate dwellings.

Your answer must be correct for the whole of the property included in the transaction, especially if that transaction covers more than one building or more than one site. For example, the sale of a farmhouse with farm buildings, farmland and an agricultural worker’s cottage must be returned as mixed.

04 Residential - additional properties. Applies where the purchase of a residential property results in you owning more than one residential property. If the new property is a replacement for your main residence which has not yet been sold, you must still use this code but you may be able to claim a refund when your main residence is sold. This code must be used if you’re a company or non-individual purchasing any residential property, even if it is the only residential property owned.

If you are notifying on paper form SDLT1 and answer 02 or 03 you must also complete form SDLT4 to indicate the use or uses of the non-residential part(s), together with any other relevant parts of that form. If you are notifying online the software will ask you the appropriate questions.

Please note that if you are using this guidance to answer SDLT1 question 16 or 1.16 online you need to select one of the following codes to describe the property leased

 

Residential R
   
Non-residential N
Mixed M

 

The code you select for question 16 must correspond with the type of property selected for question 1.