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Garage forms part of the grounds of the property

06 September 2023
Issue: 4904 / Categories: Tax cases
T Kozlowski (TC8902)

In January 2022 the taxpayer bought a property which included a garage. On the day of completion he let the garage for £50 a month. He submitted a stamp duty land tax return on the basis the whole property was a residential. A few days later he amended the return to say the mixed use rates applied. HMRC issued a refund.

In August HMRC opened an enquiry and later issued a closure notice  concluding that the property was wholly residential and that a further £134 250 tax was due.

The taxpayer appealed.

In essence counsel for the taxpayer said it was a timing issue. It was necessary to consider the status of the property at the end of the ‘effective date’ of the transaction and as there was a commercial lease over the garage in place at the end of the effective date the property was...

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