Residential properties and SDLT: practical issues

Purchasers of residential property are neglecting to take SDLT advice. They rely on figures provided by conveyancers which are often the worst-case result. A small piece of non-residential subject matter in a transaction can reduce SDLT because non-residential rates are less than residential rates – but expect HMRC resistance. There are opportunities around multiple dwellings relief (MDR) and also the very favourable interaction between MDR and non-residential property in a transaction (following a recent change to HMRC’s position). The rules around the 3% surcharge can also present difficulties. Sometimes transactions can be structured so as to reduce the charge. Hopefully ‘SDLT surveys’ will become common-place.