Condition Eligibility Tool.
Hazards? Claim.

Use our assessment tool to determine if your property qualifies for a stamp duty rebate due to hazardous condition issues present at the time of purchase.

Based on the court case [2024] UKUT 00307 (TCC) involving Mr. and Mrs. Mudan and the Commissioners for His Majesty’s Revenue and Customs (HMRC), a property would be considered not suitable for use as a single dwelling if it possesses fundamental defects that render it uninhabitable and these defects cannot be remedied through repair or renovation without extensive reconstruction or demolition.

If your property meets this criteria, get in touch with us. We may be able to help, whether you’re currently buying this type of property or bought it within the last four years.

See your score at the bottom of the page.

This tool gives you a general idea of how hazardous a property might be. If the property scores over 100, there may be grounds to consider it as non-residential for stamp duty purposes due to hazardous condition issues at the time of purchase. The higher the score, the stronger the justification.

Remember, HMRC operates a “pay now, check later” policy. This means they check if the process was followed correctly. If it was, they’ll accept the case. However, sometimes they may investigate further to assess the legal basis of the case bu opening an ‘enquiry’.

If HMRC enquires on the case, you can either dispute it or pay the stamp duty they ask for, along with a small amount of interest.

It’s important to note that HMRC is unlikely to issue a penalty as long as your case is not abusive and you have a reasonable argument that the property was uninhabitable when purchased due to hazardous condition issues.

It’s legally arguable that properties with hazardous condition issues at purchase are not safe to live in and therefore not suitable as a dwelling. For more details on our legal arguments, please visit this page. (Link opens a new tab)

Based on the court case [2024] UKUT 00307 (TCC) involving Mr. and Mrs. Mudan and the Commissioners for His Majesty’s Revenue and Customs (HMRC), a property would be considered not suitable for use as a single dwelling if it possesses fundamental defects that render it uninhabitable and these defects cannot be remedied through repair or renovation without extensive reconstruction or demolition. The key characteristics of such a property include:

  1. Structural Unsoundness: The building is not structurally sound, with significant risks of collapse or failure. Examples include severely damaged foundations, collapsing walls, or a missing roof that compromises the building’s integrity.
  2. Presence of Hazardous Materials: The property contains hazardous materials (e.g., extensive asbestos contamination) that make it unsafe for occupancy and pose significant health risks. If the removal or remediation of these materials is impractical or impossible without demolition, the property is unsuitable.
  3. Irreparable Damage: The building has suffered damage that is beyond repair, such as severe fire damage, extensive rot, or other deterioration that cannot be fixed through normal repair and renovation efforts.
  4. Demolition Required: The only feasible option to make the property usable is complete demolition and rebuilding. If the existing structure cannot be salvaged or adapted for safe residential use, it is not suitable as a dwelling.
  5. Lack of Basic Facilities and Physical Integrity: The property lacks essential features that constitute a dwelling and cannot be restored without major construction work. This includes absence of floors, walls, roofs, plumbing, or electrical systems that are integral to making the building habitable.
  6. Dangerous to Occupy: The building poses immediate dangers that cannot be mitigated without fundamental alterations. This could be due to severe structural issues, environmental hazards, or other conditions that make occupancy unsafe.
  7. Not Capable of Being Made Suitable: Even with potential repair or renovation, the property cannot be made suitable for use as a dwelling because the required work goes beyond what is considered repair or renovation and enters the realm of new construction.

Huge Library of Stamp Duty Help Information
For excerpts from Nick Garner’s reference book on stamp duty, visit here.
For a comprehensive list of all our 1000+ HMRC guidance pages, visit here.
Hazardous condition issue claims process, visit here.

Tools

Residential to non-residential or mixed use Stamp Duty Calculator
Residential to non-residential or mixed useWRA LTT Calculator

Case Reference

200+ Quick Case Studies
Fees/Pricing
Reference Guide/Knowledgebase
Claiming Stamp Duty: UK Finance Act 2003
Documents for Stamp Duty Refund Claims

Written by Land Tax Expert Nick Garner.
See free excerpts here.