When a house is not a home

Julie Butler examines the diff erent defi niti ons of dwelling for CGT and SDLT purposes

There is a need to review the tax position of residenti al property with haste. How can a dwelling be defined differently for capital gains tax (CGT) purposes than for stamp duty land 

tax (SDLT) purposes? Whilst the UK has the lowest CGT rates since the introduction of the CGT regime, there are still advantages to trying to avoid the residential rate of 28%. This is where looking at the definition of dwelling is key.