Mixed-Use Property Stamp Duty Calculator
Calculate SDLT for properties with commercial and residential elements
Mixed-Use SDLT Calculator
Commercial Rates = No Surcharge
Mixed-use properties are taxed at commercial SDLT rates, which means you avoid the 5% additional property surcharge that applies to residential purchases. This can save you tens of thousands of pounds, especially on higher-value properties.
What Qualifies as Mixed-Use Property?
A property must have a genuine non-residential element to qualify for commercial SDLT rates. Common qualifying examples include:
Likely to Qualify
- •Shop with flat above
- •Pub or restaurant with living quarters
- •Farm with farmhouse
- •Property with attached workshop/studio
- •Office building with residential flat
- •House with genuine agricultural land
Unlikely to Qualify
- •Home office in residential property
- •Garden shed used for storage
- •Granny flat or annexe
- •Large garden without agricultural use
- •Garage let to tenants
- •Unused or derelict commercial space
Mixed-Use (Commercial) vs Residential Rates
Commercial / Mixed-Use Rates
| Band | Rate |
|---|---|
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 2% |
| Over £250,000 | 5% |
No additional property surcharge
Residential + Surcharge
| Band | Rate |
|---|---|
| Up to £250,000 (+5% surcharge) | 5% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5m | 15% |
| Over £1.5m | 17% |
Includes 5% additional property surcharge
Potential Stamp Duty Savings
| Price | Mixed-Use | Residential | Res + Surcharge | Max Saving |
|---|---|---|---|---|
| £300,000 | £4,500 | £2,500 | £17,500 | £13,000 |
| £500,000 | £14,500 | £12,500 | £37,500 | £23,000 |
| £750,000 | £27,000 | £25,000 | £62,500 | £35,500 |
| £1,000,000 | £39,500 | £41,250 | £91,250 | £51,750 |
| £1,500,000 | £64,500 | £91,250 | £166,250 | £101,750 |
Max Saving shows the difference between mixed-use rates and residential rates with the 5% additional property surcharge.
HMRC Scrutiny of Mixed-Use Claims
HMRC actively investigates mixed-use SDLT claims. If a claim is found to be incorrect, you may face:
- Additional SDLT at the correct (higher) rate
- Interest on the unpaid tax from the original transaction date
- Potential penalties of up to 100% of the underpaid tax
Always seek professional advice from a solicitor or tax advisor before claiming mixed-use rates.
Tax Advantages of Commercial Rates
No Surcharge
The 5% additional property surcharge does not apply to commercial or mixed-use properties, even if you already own residential property.
Lower Top Rate
Commercial rates max out at 5% (above £250k), compared to 12% for residential properties over £1.5m. The effective rate is often lower.
Higher 0% Band
Commercial properties have a 0% band up to £150,000, vs £250,000 for residential. But the overall rates are typically more favourable.
Mixed-Use Property Stamp Duty Explained
Mixed-use properties offer a significant stamp duty advantage because they are taxed at commercial SDLT rates rather than residential rates. This can result in substantial savings, particularly for buyers who would otherwise pay the 5% additional property surcharge on residential purchases.
What Makes a Property Mixed-Use?
A mixed-use property combines residential accommodation with a genuine commercial or non-residential element. The commercial element must be more than incidental - it needs to be a genuine business use or have clear commercial characteristics.
Common examples include shops with flats above, pubs with living quarters, farms with farmhouses, and properties with attached commercial workshops or studios. The key is that the commercial element must be genuine and actively used (or capable of being used) for non-residential purposes.
Agricultural Land and Mixed-Use
Properties with agricultural land often qualify for mixed-use treatment. Even a relatively small amount of genuine agricultural land - such as grazing land, paddocks used for livestock, or arable land - can make the entire transaction subject to commercial SDLT rates.
However, a large residential garden does not qualify as agricultural land. The land must be genuinely used for agricultural purposes, not simply be rural or green space.
How to Calculate Mixed-Use SDLT
Mixed-use properties use the commercial SDLT rates: 0% up to £150,000, 2% from £150,001 to £250,000, and 5% on the portion above £250,000. There is no additional property surcharge, regardless of whether you already own other properties.
Professional Advice is Essential
Given HMRC's scrutiny of mixed-use claims and the potential penalties for incorrect claims, it's essential to seek professional advice before claiming mixed-use SDLT rates. A specialist property solicitor or tax advisor can assess whether your property genuinely qualifies and help you structure the transaction appropriately.