SDLT / Mixed Use Query

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    SDLT / Mixed Use Query

    I have recently purchased a share in two properties which back onto each other, under separate titles. The front block has a house, the back an office with vacant land. Both plots are similar sizes.
    The back block is what remains of a commercial enterprise which was sold and the house was used as a residence by the owners of that business.
    My husband dealt with the legalities, instructing the solicitor to submit the SDLT form and deal with a couple of small technicalities. Other than a request for my NI number and DOB, no further information was asked of me. I heard nothing more so assumed no tax was due as the entire sale was under £125,000.

    I am now concerned, having read about second properties, that as I own a rental property I should have paid tax on this transaction. When I queried this with my solicitor, he advised that I had not asked for legal advice and that the sale was treated as commercial, therefore no tax was due. This seems odd as we had mentioned in an earlier email one plot had the house, the other an office.I also questioned why no-one had asked me about owning any other property to which I got no response.

    Its my belief that an apportionment should be made for each block (with the house title being of higher value)and hope that HMRC agree. I cannot see how the residential dwelling, whilst bordering the commercial site can be treated as commercial when it has its own title and was used as a home.
    Or can it be argued, the house, given its association with the business for some forty years, be considered to have a commercial element to it?
    I can't see how it could and think the solicitor has made an error. I also feel they had a duty of care to obtain all necessary information from me in order to accurately complete and submit the SDLT form as instructed to do so.

    Should two SDLT forms have been completed; one residential/ one commercial, given each block has its own title or one application with mixed use applied?

    Any thoughts would be appreciated.

    Thank you

    Last edited by Bilo; 04-11-2019, 16:20 PM. Reason: Content Omitted

    For mixed-use property with residential and commercial parts, the sdlt starts at £150K. So don't worry if your total purchase was under £125K ..


      Thanks for your reply. I requested confirmation from my solicitor that this was the case to which he agreed, stating he had forgotten there was a house on the block but the commercial footprint is greater so no tax is due. Now he is expecting us to correct the SDLT application with HMRC when his firm submitted it under commercial usage only, without consultation. I will be asking him to correct his errors.


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