SDLTM62040 | Processing: Further guidance for completing forms SDLT1, SDLT3 and SDLT4: Selecting the appropriate code for ‘Type of property’

Question 1 on SDLT1, Question 1 on the SDLT3 and Question 8 on the SDLT4

These questions must be answered with one of four options, 01, 02, 03 or 04, depending on the type of property that is the subject of the transaction.

01 Residential property is defined at FA03/S116 as:

• a building used or suitable for use as a dwelling, or in the process of being constructed or adapted for use as a dwelling

• land that forms part of the garden or grounds of such a building, including any building or structures on the garden or grounds (see SDLTM00440 to SDLTM00480)

• an interest or right in or over land that benefits a dwelling, for example a right of way to access the dwelling.

FA03/S116 provides that anything that is not residential property is non-residential property.

02 Mixed where only part of the property is residential. This also applies where a transaction is linked to another transaction (see SDLTM30100) and taken together the type of property purchased in the linked transactions is only partly residential.

03 Non-residential where the whole of the property is not residential. Any transaction involving the transfer of a major interest in (or grant of a lease over) 6 or more separate dwellings should be shown as non-residential unless a claim for Multiple Dwellings Relief (see SDLTM29900+) is made.

The answer given must be correct for the whole of the property included in the transaction, especially if that transaction covers more than one building or more than one site. For example, the sale of a farmhouse with farm buildings, farmland and an agricultural worker’s cottage must be returned as mixed.

04 Residential - additional properties. Applies where the purchase of a residential property results in the purchaser owning more than one residential property. If the new property is a replacement for the purchaser’s main residence which has not yet been sold, this code must still be used but it may be possible to claim a refund when the main residence is sold. This code must also be used if a company or non-individual purchases any residential property, even if it is the only residential property owned.

If paper form SDLT1 is used and the answer to Question 1 is either 02 or 03 an SDLT4 must also be completed to indicate the use or uses of the non-residential part(s), together with any other relevant parts of that form. If notification is made online the software will ask the appropriate questions.

Question 16 on the SDLT1

When answering SDLT1 question 16 one of the following codes must be selected to describe the type of property leased

The code selected for question 16 must correspond with the type of property selected for question 1 on the SDLT1.