Residential SDLT in Practice

Session 1 – Chargeable Consideration

This residential SDLT training session provides a practical examination of chargeable consideration rules, transaction structuring and common risk areas encountered in complex UK residential property transactions. Session one covers the following:

• What constitutes money and money's worth?

• Debt assumption and mortgage takeovers

• Works, services, and building obligations

• Overages and contingent consideration

• Incentives for new build property

• Staircasing and the 80% rule

• Linked transactions

• Exercise – Identify elements of consideration from sample contracts

• Case Study – Purchase of a £1.5M property + mortgage assumption and required works. Purchase of a new build with common incentives

Session 2 – Classification, Residential, Non-Residential and Mixed-Use

During this session, we focus on property classification rules and the key considerations determining residential and non-residential SDLT factors and mixed-use treatment. Session two delves into:

• Definition of “dwelling”

• Delapidated and run-down property

• Garden and Grounds

• Curtilage vs non-curtilaged land

• Commercial/agricultural use (grazing, licenses, etc.)

• Mixed-use classification

• Exercise – Classification of five borderline property descriptions

• Case Study – House and arable land with grazing rights

Session 3 – Surcharges

This session examines SDLT surcharge rules and how they apply across different ownership and residency scenarios:

• Major interest test

• Replacement of the main resident rules

• Joint purchasers

• Residence

• Minor, historic and inherited interests

• Corporate non-residence

• Exercise – Application of surcharges to different purchasers

• Case Study – Joint family purchase of London property (different backgrounds and residences)

Session 4 – First-Time Buyers' Relief

Session 4 explores the qualifying conditions, ownership rules, and common pitfalls surrounding first-time buyers’ relief and includes:

• Eligibility criteria

• What constitutes previous ownership

• Joint Purchasers

• Common traps and misconceptions

• Exercise – Review purchaser profiles to identify which are likely to fail

• Case Study – FTB with Polish inheritance vs UK inheritance

Session 5 – Annexes and Subsidiary Dwellings

• Meaning of self-contained

• Internal vs external access

• HMRC’s pre-MDR “holding out” test

• How post-MDR principles affect Annexes and Subsidiary dwellings

• SDLT rates

• Exercise – Identify pain points in the post-MDR world, and evidence needed to support the decision

• Case Study – Review two property examples, Coach house with annexe and subsidiary building, and Old farmhouse with barn conversion.

Session 6 – Applied SDLT Scenario Analysis

This session examines how annexes and subsidiary dwellings are treated for residential SDLT purposes, including key classification tests, evidential challenges, and post-MDR considerations. Participants will:

• Combine factors discussed throughout the day

• Apply the test to real-world facts

• Develop evidence-based reasoning and supporting questions

• Exercise – Open discussion regarding various real-world examples

• Case Study – Property development company, with dilapidated property and linked transactions

Training Objectives

• Participants will understand the residential SDLT rules applicable to common residential and commercial property transactions

• Training ensures you will correctly identify chargeable consideration, including VAT, debt, overages and non-cash elements

• Sessions distinguish between residential, non-residential and mixed-use property

• Delegates will be able to correctly identify when higher rates, non-resident surcharges, and first-time buyers’ relief apply to a transaction

• This course assesses whether an annexe or outbuilding constitutes a separate dwelling

• Apply the relevant rules through practical examples and case studies

Training Course Summary

Residential SDLT is a practical, focused course providing a real-world overview of the associated issues arising in residential property transactions. Using scenarios, diagnostic frameworks and applied case studies, delegates learn how to analyse purchases with confidence whilst avoiding common and related pitfalls.

• Training offers a practical, example-led exploration of the key issues across residential, mixed-use and commercial property

• Sessions focus on real-world examples

• Participants will review real-world case studies on development sites, subsidiary dwellings, higher rate and first-time buyers' relief

• This course emphasises clear frameworks to support accurate residential SDLT analysis and reporting

• Sessions are designed to equip practitioners with the practical tools that can be applied to client work