Blogs
SDLT Relief: What Counts as an Uninhabitable Property?
Wednesday 16th April 2025
The Inland Revenue (now HMRC) defines a property as uninhabitable for the purposes of Stamp Duty Land Tax (SDLT) relief in very limited and specific circumstances.
Definition of “uninhabitable” (for SDLT purposes):
According to HMRC guidance and case law, a property is uninhabitable if it is not suitable for residential use at the time of purchase — that is, it cannot be lived in without major work or reconstruction. This goes beyond just being in poor condition.
Key characteristics of an uninhabitable home:
No functioning kitchen or bathroom
Unsafe or incomplete electrics
No running water or heating
Structural damage or risk of collapse
Asbestos contamination or serious damp/rot
Infestation (if severe enough to prevent safe occupancy)
Merely being in poor decorative order, needing a refurb, or being “undesirable” does not qualify.
Why it matters:
If a property is genuinely uninhabitable, it may be treated as non-residential for SDLT purposes. This means:
The higher residential rates (including the 3% surcharge for second homes) may not apply
Instead, the non-residential rates (which are usually lower) may be charged
Caution:
HMRC takes a strict view — and buyers must have evidence (e.g. surveyor’s report or building control rejection)
Misclaiming could lead to investigation, penalties, and interest
If you're unsure whether a property qualifies as uninhabitable for SDLT purposes, Tayross Associates Ltd can help. Our experienced team of chartered surveyors can carry out a detailed inspection and provide the professional evidence you need — including comprehensive reports that clearly assess the property's condition against HMRC’s strict criteria. Don’t leave it to chance; contact Tayross Associates today to book a survey and get clarity before you file.
