SDLTM20300 - Freeports and Investment Zones relief – meanings of dwelling and residential property

What does and doesn’t count as ‘residential property’ is defined for SDLT generally by section 116 of the Finance Act 2003 and covers such structures as dwellings, student accommodation and hotels.

‘Dwelling’ takes its natural meaning. HMRC’s guidance on this can be found at SDLTM00380 etc.

Hotels do not count as residential property or dwellings (s116(3)(f)) and therefore may meet the ‘use in a qualifying manner’ test.

Property used for student accommodation will rank as a dwelling (s116(2)(b)) and therefore as residential property, and will not meet the ‘use in a qualifying manner test’ unless the accommodation takes the form of ‘halls’ para (sub-section 3(b))

See SDLTM000375 for more information on hotels, student accommodation, etc.