he SDLT status of holiday lets is currently a matter of debate with HMRC. Holiday let accommodation that meets the definition of a dwelling (i.e. it has a living and sleeping area, somewhere to prepare meals and to consume them and a bathroom) and is otherwise suitable for use as a residence can in principle be regarded as residential property. However, the presence of one or more of the following factors may mean that the property is correctly regarded as non-residential: nn(1) the commercial use: Judge McKeever said in Hyman v HMRC [2019] UKFTT 0469 (TC) at [62] that “Land would not constitute grounds to the extent that it is used for a separate, eg commercial purpose. It would not then be occupied with the residence, but would be the premises on which a business is conducted.''nn(2) liability for and payment of business rates instead of council taxnn(3) planning or other legal restrictions that prevented settled occupation of the accommodation by the same person e.g. a bar on occupation by the same person for more than a three-month continuous period in any 12 month periodnn(4) whether the owner/operator provides breakfast to guestsnnIn their published guidance at SDLTM00210 HMRC state that:nn“For example, a holiday chalet that is used for short stays would not be ‘used as’ a dwelling by the short term visitors. However, the chalet may still be ‘suitable for use’ as a dwelling. This is a question of fact in each case and depends on the wider context. So for instance, if restrictions of planning exist whereby chalet use is not permitted out of season or where only short stays are permitted then this would be a factor indicating that the chalet will also not be ‘suitable for use’ as a dwelling. This is further discussed under ‘Mixed Residential/Non-Residential Property’ at SDLTM00390.”