SDLTM00360 - Scope: what is chargeable: land transactions: Residential and non-residential 바카라 사이트� relevant land
SDLT is charged by reference to the nature of the land being acquired. In many cases it will be straightforward to identify whether the land in question is residential or non-residential, however there will also be cases which are not as clear cut. This guidance is intended to help decide which rates should apply to a transaction.
Please note that the rules regarding FA03 Schedules 6A (Relief for certain acquisitions of residential property), 6B (Transfers involving multiple dwellings), 4A (Higher rate for certain transactions) and 4ZA (Higher rates for additional dwellings and dwellings purchased by companies) modify the general rules applicable to most transactions. The specific modifications are explained elsewhere in this manual. All references are to FA 2003 unless stated.
Relevant land: residential or non-residential
Under s55(1B) different rates apply depending on whether the 바카라 사이트榬elevant land바카라 사이트� 바카라 사이트榗onsists entirely of residential property바카라 사이트� or 바카라 사이트榗onsists of or includes land that is not residential property바카라 사이트�. So broadly speaking, for the residential rates to apply, the transaction cannot include any non-residential land. In order to apply this test purchasers need to understand what 바카라 사이트榬elevant land바카라 사이트� is and what 바카라 사이트榬esidential property바카라 사이트� is.
Relevant land
바카라 사이트楻elevant land바카라 사이트� is defined in s55(3)(a) as being 바카라 사이트榯he land an interest in which is the main subject-matter of the transaction바카라 사이트�. S43(6) specifies that for the purposes of the SDLT legislation, 바카라 사이트榬eferences to the subject-matter of a land transaction are to the chargeable interest acquired (the 바카라 사이트渕ain subject-matter바카라 사이트�), together with any interest or right appurtenant or pertaining to it that is acquired with it.바카라 사이트�. So in order to apply the correct rates of SDLT, purchasers need to identify the chargeable interest they are acquiring. This is distinct from any separate interest or right acquired with it. In applying the legislation, it is only the 바카라 사이트榤ain subject matter바카라 사이트� which makes up the 바카라 사이트榬elevant land바카라 사이트�. Interests or rights acquired at the same time may well influence or evidence the use of the land but they are not the actual interest being assessed.
Establishing the nature of the relevant land at the time of the land transaction
The nature of the relevant land should be assessed at the time of the land transaction.
The time of the land transaction, in the case of a transaction which is completed without being substantially performed, is the very moment of completion. In a case where a contract is substantially performed, it is the time when the contract is substantially performed (for further guidance on substantial performance see SDLTM07700+). Anything that alters the nature of the relevant land after the time of the land transaction, even on the effective date of the transaction, is ignored.
Linked residential and non-residential property
Where a purchaser is submitting one or multiple returns for linked transactions (SDLTM30100) involving residential and non-residential property, the 바카라 사이트榬elevant land바카라 사이트� is set out in s55(4) as being 바카라 사이트榯he main subject-matter of any of the linked transactions바카라 사이트�. It follows from s55(1C) that where linked transactions contain a mixture of residential and non-residential land the non-residential rates will be applicable to each of the linked transactions. There is no apportionment of residential/non-residential rates. (Unless multiple dwellings relief is claimed, for which see SDLTM29900)