Multiple dwellings relief for land with planning permission

The two appeals were heard together. They have been designated lead appeals with two groups stayed behind them.

Each taxpayer acquired property over which planning permission had been granted for the construction of multiple dwellings before the effective date of each transaction. Both companies then built dwellings in line with the planning permission. They each claimed multiple dwellings relief on the basis that the existence of planning permission satisfy FA 2003 Sch 6B para 7 - that a building counts as a dwelling for the purposes of multiple dwellings relief if it is in the process of being constructed or adapted for such use. AKA had undertaken some initial work on the site and argued that this was part of the construction process.

The First-tier Tribunal held that neither taxpayer had acquired any dwellings so were not eligible for multiple dwellings relief. The judge said stamp duty land tax...