SDLTM30070 - Example: P buys a hotel for £3 million

P buys a hotel for £3 million. It had previously been a single dwelling and P intends to restore it as a family home.

Table B applies and the rate is 4 per cent. S116(4) says that any building listed in S116(3) is not residential even if it is suitable for residential use. S116(3) includes ‘hotel or inn or similar establishment’.