SDLT on dilapidated properties

The SDLT rate depends on whether a property is residential or non-residential. Some buyers wrongly claim refunds by arguing a property is uninhabitable. In Amarjeet and Tajinder Mudan v HMRC [2025] EWCA Civ 799, the Court of Appeal ruled that a property needing repairs can still be “suitable for use as a dwelling.”

The Court clarified that immediate occupation isn’t required — what matters is structural soundness and dwelling characteristics. HMRC warned that only a few properties are truly uninhabitable, and even major repairs or renovations don’t change their residential status. SDLT remains payable at residential rates.