Mixed Use property: claiming a Stamp Duty refund
When a property has mixed purposes, like a shop with a flat above it, it’s classed as a Mixed Use property and becomes eligible for Stamp Duty relief. Wrongful classifications can lead to overpayments in Stamp Duty.
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What is a Mixed Use property?
A Mixed Use property has both residential and non-residential elements. Residential elements are classed as dwellings where someone lives as a homeowner or a tenant. Non-residential elements include retail space, land, or property that isn’t suitable to live in.
What classifies as a Mixed Use property?
A flat above or below a shop or GP surgery
Agricultural land that’s used as a farm
An office building with retail space
An apartment block with an on-site gym
A house with land that is hired for commercial purposes, like barn venues
A house with a paddock or stable yard that people pay to keep horses
- Good examples
- A flat connected to a shop, doctors’ surgery, public library, or office
- A residential apartment building with shops, office space, or a gym on site
- An office building with retail space, like a coffee shop or clothing store
- A residential home with a paddock or stable yard that is used by a third party for grazing horses
- Bad examples
- A cottage with fields or agricultural land where the land is sold as part of the garden or grounds
- A six-bedroom house with a room above a detached garage that is used as an office
- A house with a paddock behind the garden that is used occasionally to keep a neighbour’s horse
- A property with a derelict barn that is not used for commercial purposes, like public event hire or raising market animals
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Paying Stamp Duty on Mixed Use properties
Stamp Duty still needs to be paid on Mixed Use properties over £150,000. However, the rates are considerably lower compared to residential properties.
As a standard, HMRC considers all properties that are connected to or have commercial space on site as Mixed Use.
Commercial space can mean a house is above a shop or that land on the property grounds is hired out to keep horses. It can also mean a farm.
HMRC classify Mixed Use properties on a case-by-case basis, so a purchase may have wrongfully been deemed ineligible for relief.
In these cases, you can apply for an SDLT refund if you paid too much.
An option to tax means you can claim input tax on the costs of the property, including the costs of purchase, because of its non-residential unit. For example, if it has a shop or GP surgery connected to the dwelling.
What should you pay in SLDT?
- Residential Stamp Duty rates*
- 0% up to £250,000
- 5% on the proportion from £250,001 to £925,000
- 10% on the proportion from £925,001 to £1.5 million
- 12% on any remaining amount over £1.5 million
- *A 3% surcharge is added to these rates if the property is purchased in addition to another residential property you own.
- Non-Residential Stamp Duty rates
- 0% up to £150,000
- 2% on the proportion from £150,001 to £250,000
- 5% on any remaining amount over £250,000
Are you owed thousands in Stamp Duty?
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How to claim a Stamp Duty refund for Mixed Use property
01
Check eligibility:
First, check your eligibility for an SLDT refund.
Ask our team for a no-obligation assessment if you’re unsure. You may be eligible for other reliefs.
02
Prepare a claim:
Gather the evidence needed to build your case and apply for an SDLT refund to HMRC.
Paperwork about the purchase, plus supporting evidence, will be required.
03
Submit application:
Once your application is prepared, submit it online or via post to HMRC.
Or ask our team to manage your application and handle the process on your behalf.
04
Get a refund:
When a refund application is accepted, you get the money within 8 weeks.
Complex cases or incomplete claims may require further evidence. In these instances, refunds will take longer.
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Mixed Use property FAQS
You pay Stamp Duty on Mixed Use properties costing over £150,000. Any Mixed Use property below this price is exempt from Stamp Duty. If paying Stamp Duty on a Mixed Use property, the rates are lower compared to residential properties. You pay 2% on amounts between £150,000 to £250,000 and 5% on anything over £250,000.
Multiple Dwellings Relief (MDR) no longer exists as of 01 June 2024. You can only claim MDR if your property completes by 31 May 2024, or if it exchanged before the government announced the change on 06 March 2023. Claims for MDR must be made before 31 May 2025 to be considered.
A property is considered Mixed Use if it has both residential and non-residential units. Generally, this includes shops with flats above it, an apartment block with retail space, or a house with land that’s rented by the public, like as a stable. It does not include houses sold with grounds that aren’t used for commercial purposes.
Generally, a farm is considered a Mixed Use property if it has agricultural land that is used for commercial agricultural purposes. If agricultural land is sold as part of the garden or grounds of a house, this isn’t considered a farm for Stamp Duty purposes. It is therefore not a Mixed Use property and is subject to residential property Stamp Duty rates.
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Fast, informative and successful!
Paul EdwardsI reached out to StampDuty.com in August to discuss a purchase I made last year.
The property was in a bad state of repair, lots needed doing. When StampDuty.com gathered the documents and images of the property, they let me know I could save roughly £40,000. This seemed amazing but i was sceptical, why didn't my lawyer point this out. After many reassuring conversations and pointing to legislation to explain their answers, we pushed ahead.
I am pleased to say I received my refund at the end of October! I just want to thank Joe and the team for all of their hard work and the fast turnaround.