Gary Withers v The Commissioners for HMRC
[2022] UKFTT 433 (TC)
James George Gibson v The Commissioners for HMRC
12 July 2023
[2023] UKFTT 648 (TC)
First-tier Tribunal
Someone bought a big house with land. The government said the whole thing was a house and taxed it at a higher rate. The owner argued some of it was farmland, but the judge said it was all part of the house, and it was too late to claim a discount.
Key Facts
- •James George Gibson (JG) appealed against a £83,000 Stamp Duty Land Tax (SDLT) closure notice for the purchase of Doe Bank Manor.
- •The property comprised a six-bedroom house, a barn, a garage with an office above, stables, and a two-acre paddock.
- •HMRC argued the entire property was residential, while JG claimed mixed residential and non-residential use, potentially qualifying for Multiple Dwellings Relief (MDR).
- •The dispute centered on whether the paddock and the office above the garage were part of the dwelling's garden or grounds under Section 116(1) of the Finance Act 2003.
- •JG's claim for MDR was deemed out of time as per Section 58D and Schedule 6B of the Finance Act 2003.
Legal Principles
Definition of residential property, including land forming part of a dwelling's garden or grounds.
Finance Act 2003, Section 116(1)
Factors to consider when determining whether land is part of a dwelling's grounds: historic and future use, layout, proximity, extent, and legal constraints.
Hyman v HMRC [2019] UKFTT 469 (TC), Hyman & Ors v HMRC [2021] UKUT 68 (TCC), James Faiers v HMRC [2023] UKFTT 212 (TC)
Land used for a separate commercial purpose, actively and substantially exploited regularly, is not considered part of a dwelling's grounds.
Myles-Till v HMRC [2020] UKFTT 127 (TC), HMRC SDLT Manual 00460
Rights of way over land do not necessarily prevent that land from being considered part of a dwelling's grounds.
Hyman v HMRC [2019] UKFTT 469 (TC), Averdieck & Anor v HMRC [2022] UKFTT 374 (TC)
Buildings or structures on land forming part of a dwelling's grounds are considered residential property regardless of their use.
Brandbros Ltd v HMRC [2021] UKFTT 157 (TC)
Claims for Multiple Dwellings Relief (MDR) must be made within the SDLT return or an amendment within twelve months of the filing date.
Finance Act 2003, Section 58D, Schedule 6B, paragraph 6(3)
Outcomes
Appeal dismissed.
The Tribunal found that the paddock and the office above the garage were part of the dwelling's garden or grounds, rendering the entire property residential. JG's MDR claim was out of time.