The taxpayer owned an end-of-terrace property. In October 2019 he bought the neighbouring property in October 2019 and immediately began work to remove the partition wall to form a single larger property.
He submitted a land transaction tax return on the basis that the higher rate of tax was not due. After an enquiry the Welsh Revenue Authority (WRA) concluded the higher rate was due. It emailed the taxpayer a closure notice which imposed penalties on the basis that the inaccuracy was careless.
The taxpayer appealed.
The First-tier Tribunal confirmed that given the taxpayer had agreed to receive all documentation relating to the enquiry by email the closure notice was valid.
It said the higher rate applied because the neighbouring property had not formed part of the taxpayer’s main residence before its purchase. On the effective date of the transaction the taxpayer had a major interest...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.