What counts as mixed use property for SDLT?

Home Forums Patrick Cannon What counts as mixed use property for SDLT?

This topic contains 2 replies, has 1 voice, and was last updated by What counts as mixed use property for SDLT? by Patrick Cannon 1 Justin Bryant 31st May 2017 at 5:41 pm.

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    What counts as mixed use property for SDLT? by Patrick Cannon 2
    Nick Holmes

    I have a case where a developer is buying a disused church and ancillary accommodation which is basically a bungalow a priest occupied. The site has planning for 8 houses. Does this count as mixed use even though planning has been obtained. To be clear the site when purchased will consist of the church and the bungalow. Thank you.

    #826 Reply
    What counts as mixed use property for SDLT? by Patrick Cannon 3
    Patrick Cannon

    Nick, the legislation in s 116(1)(a) refers to a building that “is in the process of being … adapted for [residential] use.” Arguably the obtaining of residential planning permission forms part of such a process although I think that that is too wide a reading and the words “process” and “adaption” are intended to refer to the physical building work rather than mere planning permission which of course might not lead to anything and could eventually lapse if the work was never started. Indeed if planning use counts then the existing permitted use as non-residential ought to have at least equal weight with the planning permission to change to residential. HMRC say at SDLTM20080 that: “Where, at the effective date, an existing building is being adapted or marketed for, or restored to, domestic use, it is treated as residential property.” I have not researched their authority for the bit about ‘marketed” making it residential but on the face of it I do not agree with them.

    #827 Reply
    What counts as mixed use property for SDLT? by Patrick Cannon 2
    Justin Bryant

    I agree. The corollary if PC were wrong re mere planning permission would be that MDR could be claimed for that – which cannot be right.

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