Self-purchase

Application for costs after HMRC withdrew decision

The taxpayer and N had a mortgage on a property. They defaulted on their repayments and the bank appointed receivers to sell it. The taxpayer and N bought the property at an auction.

HMRC said stamp duty land tax was due on the purchase so the taxpayer filed a return and paid the tax. The taxpayer later questioned the liability on the ground of a letter from the Land Registry which stated that under the Law of Property Act 1925 a person cannot convey a property to himself because it would not be possible to enforce any contractual obligations. HMRC said the taxpayer had bought the house from the receiver so duty was payable. The taxpayer appealed to the First-tier Tribunal.

Before the hearing having referred the case to the Solicitor’s Office HMRC advised that its decision...