Taxpayer victory bucks trend in SDLT row - Dunhams News Blogs

Taxpayer victory bucks trend in SDLT row



Posted on: 10-07-2024

Stamp Duty made not so easy for Small Business Accounting

Big Business still need to take care with Duty Claimes?

Taxpayer victory bucks trend in SDLT row

Stamp duty land tax (SDLT) refund claims have been a target of HMRC investigations over recent years. This is usually due to weak claims for non-residential rates to apply, and HMRC has had a lot of success at the tribunals. However, a taxpayer has just won their case. What was different this time?

Small Business Accounting - Taxpayer victory bucks trend in SDLT row - Dunhams News Blogs

SDLT rates are different for residential and non-residential property. The non-residential rates are generally more favourable, particularly for more expensive property as the highest rate is 5%. An important point with classification is that where a single property has a “mixed use”, i.e. some residential and some non-residential, the non-residential rates apply.

For more help take a look at our Personal Tax Services

Non-residential property includes:

Stamp Duty and Entreprise Business Accounting - Taxpayer victory bucks trend in SDLT row - Dunhams News Blogs

A mixed property has both residential and non-residential elements, e.g. a flat above a shop. HMRC has become increasingly concerned about spurious refund claims, e.g. where a public path over part of the grounds was argued to mean the whole property was mixed. However, in the case of Marie Guerlain-Desai (G) the tribunal sided with the taxpayer. G purchased a six-bedroom house situated in around 32 acres of land. Twelve of these acres were mature woodland. G had initially paid SDLT at the residential rates, but claimed a refund on the grounds that the woodland was much more extensive than a typical house of that character. The woodland had public access, and G had obligations to maintain it meaning it was a financial burden on her.

Taxpayer victory bucks trend in SDLT row

Perhaps crucially, G provided substantial photographic evidence of the woodland to back up her assertions. In contrast, it transpired that HMRC had not sent anyone to visit the site, and had made claims that were completely at odds with the evidence G presented. The tribunal concluded that the woodland was not part of the dwelling’s ground or gardens, and allowed the appeal.

back to the menu top

If you would like any assistance with any of these points.

Please Call Us on 0161 872 8671

Scroll to Top