Mixed-Use Property Stamp Duty Calculator
Mixed-use property is taxed at non-residential rates, capped at 5%. The savings against residential rates can be substantial above £925,000, but HMRC scrutinises claims closely.
When mixed-use rates apply
A property qualifies for mixed-use rates when the transaction includes both residential and genuinely non-residential elements. Typical examples include:
- a shop or office on the ground floor with residential flats above
- a doctor's, dentist's or veterinary surgery with attached living accommodation
- a farmhouse sold together with let agricultural land
- a property with land formally let to a third party under a commercial agreement
- a residence with a separately operated holiday cottage business
HMRC consistently challenges weak mixed-use claims, particularly where the non-residential element is small, informal, or unused. The non-residential use must be material, current and commercial, not theoretical or historic.
Mixed-use SDLT versus residential at common prices
| Price | Mixed-use | Residential | Difference |
|---|---|---|---|
| £200,000 | £1,000 | £1,500 | −£500 |
| £350,000 | £7,000 | £7,500 | −£500 |
| £500,000 | £14,500 | £15,000 | −£500 |
| £750,000 | £27,000 | £27,500 | −£500 |
| £1,000,000 | £39,500 | £43,750 | −£4,250 |
Frequently asked
- What counts as mixed-use for SDLT?
- A property that includes both residential and non-residential elements. The classic example is a shop with a flat above it, but it can also be a residence with grazing land let to a farmer, a doctor's surgery operated from part of the home, or a farmhouse sold with let agricultural land.
- How much can mixed-use rates save?
- A lot at the top end. On a £1 million property, mixed-use SDLT is £39,500 versus £41,250 standard, modest. On a £2 million property, mixed-use is £89,500 versus £153,750 standard, a £64,250 saving. The benefit grows quickly above £925,000 because residential rates climb to 10% and 12%.
- Can I claim mixed-use rates if I just have a paddock with my house?
- Only if the non-residential element is genuine and material. HMRC routinely challenges thin claims, a paddock with no commercial use is unlikely to qualify. A formally tenanted paddock under a grazing licence, with rent and an agreement, has a much stronger case.
- Does the additional property surcharge apply to mixed-use?
- No. The 5% surcharge applies only to residential property. A genuine mixed-use purchase is outside the surcharge regime entirely.
- What about Multiple Dwellings Relief on mixed-use?
- MDR was abolished for transactions completing on or after 1 June 2024. It is no longer available regardless of property type.
- Is the boundary between residential and mixed-use ever borderline?
- Frequently. The leading case is Hyman v HMRC, which clarified that ancillary land (gardens, paddocks used by the household) is residential. The status of detached outbuildings, let cottages on a farm, or large grounds with woodland is often disputed. Take professional advice on anything marginal.