Time limit for multiple dwellings relief

In March 2017 the taxpayer bought an office building submitted a stamp duty land tax return on the basis that the property was non-residential and paid the tax due. In May 2018 the company's agent claimed overpayment relief (FA 2003 Sch 10 para 34) saying the return was incorrect because the company 'did not know or could not reasonably have known' that multiple dwellings relief was available. The letter stated the property had permission to convert the office building into residential units.

HMRC refused the claim. The company appealed and HMRC applied to the tribunal for the appeal to be struck out saying there was ‘no reasonable prospect’ of the taxpayer’s case succeeding.

The First-tier Tribunal first had to consider whether HMRC’s enquiry was valid. In an earlier decision (TC8175) the tribunal had decided there was no valid enquiry because the opening letter stated...