Simon Holding & Anor v The Commissioners for HMRC
[2024] UKFTT 337 (TC)
Sangeeta Modha v The Commissioners for HMRC
20 September 2023
[2023] UKFTT 783 (TC)
First-tier Tribunal
Ms Modha bought a farm with a big field and argued she shouldn't pay as much tax because the field wasn't really part of the house. The judge disagreed, saying the field was connected to the house and therefore part of the property, meaning she owed more tax.
Key Facts
- •Ms Sangeeta Modha appealed an HMRC decision regarding Stamp Duty Land Tax (SDLT) on the purchase of Firs Farm.
- •The dispute centered on whether an 8-acre field was part of the dwelling's grounds, impacting SDLT rates (Table A vs. Table B of FA03).
- •Firs Farm included a 5-bedroom house, gardens, garages, stables, a manege, a paddock, and the 8-acre field.
- •The field's use before and after purchase was debated; evidence included sales particulars, planning permission, letters from neighbours, and grazing agreements.
- •The Appellant argued for Table B rates (mixed use), while HMRC maintained Table A rates (residential).
- •The field was contiguous to the dwelling but had a significant drop in elevation, making it less visible from the house.
Legal Principles
SDLT is charged on land transactions, including appurtenant interests.
Section 42 & 43, Finance Act 2003 (FA03)
SDLT rates depend on whether the interest is in residential property (defined in section 116 FA03).
Section 55(1B), FA03
Higher SDLT rates apply for second homes (Schedule 4ZA FA03).
Schedule 4ZA, FA03
Determining if land is part of a dwelling's 'grounds' requires an evaluative exercise considering factors like use, layout, proximity, extent, and legal constraints (Hyman and Goodfellow v HMRC [2022] EWCA Civ 185; Faiers v HMRC [2023] UKFTT 212 (TC)).
Hyman and Goodfellow v HMRC [2022] EWCA Civ 185; Faiers v HMRC [2023] UKFTT 212 (TC)
Outcomes
Appeal dismissed.
The 8-acre field was deemed part of the dwelling's grounds because it was contiguous, not used for a separate purpose (particularly no commercial use as of the purchase date), and available for use with the dwelling.