»Ê¹ÚÌåÓýapp

Mixed Residential/Non-Residential Property (Continued)

»Ê¹ÚÌåÓýapp test of whether the building is used or suitable for use should be applied at the time of the land transaction (see SDLTM00360). Although the phrase ‘suitable for useâ€� alludes to potential rather than actual use, the intention of the parties is not relevant to this category of the definition. »Ê¹ÚÌåÓýapp test is whether the building is ‘suitable for useâ€� at the time of the land transaction, not what the vendor/purchaser intend to use the building for. Historical use is likely to provide a guide as to what a building may be suitable for, but historical or previous use of a building is not definitive of what it is suitable for use as at the present time, especially if adaptations have taken place.

If a building with an area which does not fit the definition of residential property is sold as a single building, then it ‘consists of or includes land that is not residential property� and will therefore be taxed at the non-residential rates. This is the case regardless of the relative size of the residential and non-residential areas.