Stamp Duty is a land tax calculated on the price of property, charged at the time of purchase and in some circumstances on the leasing of land. The rate that is payable is dependent on the purchase price, the use of the property, whether it is for residential or mixed use, and whether the buyer is a corporation.

Stamp Duty Land Tax (SDLT) is most relevant when purchasing property above the £925,001 threshold. Properties over this threshold are currently taxed at 10% of the purchase price. However, many buyers are unaware of savings that can be made on mixed-use land and property, where stamp duty is calculated differently.

The Treasury defines mixed-use property as commercial property, agricultural land, forestry, any land or property that is not used as a dwelling, and six or more residential properties bought in a single transaction.

It should be noted that the land must be outside of the curtilage or amenity of the property. For example, if purchasing an estate with a manor house and parkland, HMRC may consider the parkland to be for the amenity of the house and not qualify for mixed-use rates.

The new rates and thresholds applied to mixed-use properties are £150,001 to £250,000 at a rate of 2% and properties above £250,000 at a rate of 5%. This could result in significant savings being made when purchasing a property if it qualifies for mixed-use rates.

HMRC will consider purchases on a case-by-case basis and it will be the responsibility of the purchaser to prove that the property is for mixed-use, for example demonstrating that the land is farmed or by supplying agricultural agreements.

For advice about mixed-use property and the potential SDLT savings to be made as a purchaser, call Richard Edge or Alex Orttewell on 01935 852170 or email