Read the original guidance here:
HMRC SDLT: SDLTM62040 – Processing: Further guidance for completing forms SDLT1, SDLT3 and SDLT4: Selecting the appropriate code for ‘Type of property’

SDLTM62040 – Guidance for Completing SDLT1, SDLT3, and SDLT4 Forms

Understanding Property Types in SDLT Forms

When filling out the SDLT1, SDLT3, and SDLT4 forms, you need to answer specific questions about the type of property involved in your transaction. These questions are crucial, as they help determine the Stamp Duty Land Tax (SDLT) that applies. Here is a breakdown of the key options you will encounter:

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

You must select one of the four options: 01, 02, 03, or 04. Each option corresponds to a specific type of property.

• 01: Residential Property
  • This refers to any building used or suitable for living, or one that is currently being built or modified for living purposes.
  • It includes land that is part of the garden or grounds of such a dwelling. This also covers any additional structures or buildings on that property.
  • Rights over land that benefit a dwelling, such as access rights to a home, also fall under this category.
• 02: Mixed Property
  • This selection is appropriate when only part of the property is residential. It also applies if your transaction is linked to another transaction where, together, the properties involved are partly residential.
• 03: Non-Residential Property
  • This code is suitable when the entire property is not residential. For example, if you are transferring ownership of six or more separate dwellings, you must classify this as non-residential unless you qualify for Multiple Dwellings Relief.
• 04: Additional Residential Property
  • Use this option if purchasing a residential property leads to you owning more than one residential property.
  • If the new property serves as a replacement for your main home that has not yet been sold, you should still select this code, though you may be eligible to claim a refund once the previous home is sold.
  • This option must also be used when a company or non-individual buys any residential property, even if it is their only residential property.

It’s important to select the correct option for the entire property involved in your transaction, particularly if the transaction involves multiple buildings or sites. For instance, if you are selling a farmhouse that includes farm buildings, farmland, and an agricultural worker’s cottage, you would classify it as mixed property.

Completing the SDLT4 Form

If you are using the paper version of SDLT1 and choose either code 02 (Mixed) or code 03 (Non-Residential) in Question 1, you must also complete an SDLT4 form. This additional form should indicate the use or types of uses of any non-residential parts of the property. You must also fill out any other relevant sections of the SDLT4 form.

If you are submitting this information online, the software will prompt you with the necessary questions regarding the non-residential aspects of the property.

Question 16 on the SDLT1 Form

When it comes to Question 16 on the SDLT1 form, you will need to select a code to describe the type of property you are leasing. You have three options:

• Residential (Code R)
• Non-Residential (Code N)
• Mixed (Code M)

The code you choose for Question 16 must match the type of property you selected for Question 1 on the SDLT1 form. Ensuring that these two answers are consistent is essential to avoid any potential issues with your SDLT submission.