Multiple dwellings relief did not apply to main dwelling and annex

The taxpayers bought terraced property that comprised a main house with a basement annex. Access to both was through the main house front door and a common hallway. The taxpayers filed a stamp duty land tax return on the basis it was a single property. They later sought to amend the return to claim multiple dwellings relief having been advised that the property was two single dwellings. HMRC refused and the taxpayers appealed.

The First-tier Tribunal had to consider first whether the taxpayers had amended the return in time and if not whether HMRC had discretion to accept it. It held that a notice of amendment to an stamp duty land tax return was valid only if accompanied by the sale documents (FA 2003 Sch 10 para 6(2A)). In this instance the sale contract was provided after the 12-month period in which a buyer can amend a...