Glossary · UK
What is Mixed-Use Property?
A property with both residential and commercial elements -- such as a shop with a flat above -- which qualifies for non-residential SDLT rates, usually lower than the standard residential schedule.
Full Definition
A mixed-use property contains at least one residential element and at least one non-residential element within a single transaction. Common examples include: a shop with a flat above; a public house with living accommodation; a farm with a farmhouse; and a solicitor's office occupying part of a terrace house. For Stamp Duty Land Tax (SDLT) in England and Northern Ireland, mixed-use transactions are charged at non-residential rates on the entire purchase price -- 0% up to GBP 150,000; 2% on GBP 150,001 to GBP 250,000; 5% above GBP 250,000. Critically, the 3% additional dwellings surcharge (ADS) does NOT apply to mixed-use purchases, even if the residential element would be a second home. Following the abolition of Multiple Dwellings Relief in June 2024, mixed-use classification has become the primary SDLT mitigation strategy for certain acquisitions. HMRC scrutinises claims where the non-residential component is minimal or has been artificially introduced. For CGT, the residential and commercial portions of a mixed-use property may be apportioned on disposal, with the residential share potentially attracting higher CGT rates (18%/24% in 2026/27) and Principal Private Residence Relief being partially unavailable. Scotland (LBTT) and Wales (LTT) have equivalent but distinct mixed-use rules.