SDLTM00380 - Scope: what is chargeable: land transactions: Residential Property 鈥� Used as a dwelling or suitable for use as a dwelling

The sellers or previous occupants of the building or part of a building do not need to be in residence at the time of the land transaction (see SDLTM00360 for the meaning of this phrase) for it to be considered to be 鈥渋n use鈥� as a dwelling.

A use at the time of the land transaction is a very significant factor, but long standing past use will also be considered. If a building is not in use at the time of the land transaction, but its last use was as a dwelling, then evidence will be needed to support an assertion that the building/part of the building is not suitable for use as a dwelling. Any future intention of the purchaser to use the dwelling for non-residential purposes is irrelevant for the purposes of s.116(1)(a).

The presence of physical attributes which indicate a dwelling (see SDLTM00420) is likely to indicate that the building is suitable for use as a dwelling regardless of its actual use.

Private/public legal conditions (including planning permission) affecting use are a factor in assessing suitability for use. However, although these may dissuade an occupier from using a building as a dwelling, they are not necessarily determinative of whether that building is suitable for use as a dwelling. This is particularly the case where there are restrictions in place which impact on use as a dwelling for only part of the year.

For example, a holiday chalet that is used for short stays would not be 鈥榰sed as鈥� a dwelling by the short term visitors. However, the chalet may still be 鈥榮uitable for use鈥� as a dwelling. This is a question of fact in each case and depends on the wider context. So for instance, if planning conditions exist whereby use of the chalet is not permitted out of season, or where only short stays are permitted, then this would be a factor indicating that the chalet will not be 鈥榮uitable for use鈥� as a dwelling. This is further discussed under 鈥楳ixed Residential/Non-Residential Property鈥� at SDLTM00390.

Council tax/business rates may be an indicator of suitability for use. If a building is subject to Council Tax or Non-Domestic Rates (or in some cases both) this may indicate its suitability for residential or business purposes. Conversely, if the Valuation Office have agreed to 鈥渄elete鈥� a property鈥檚 Council Tax band, this is a factor suggesting that a building may not be suitable for use as a dwelling.