Dwelling condition

Relief from higher rate of stamp duty land tax

The taxpayer bought a property with the intention of increasing its bed and breakfast business. It claimed relief from higher rate stamp duty land tax under FA 2003 Sch 4A para 5B on the basis that it would use the building ‘as a source of income in the course of a qualifying trade’. HMRC refused the relief saying this was not within the definition of qualifying trade in para 5B(3). It accepted that the first condition was satisfied in that the trade was to be carried out on a commercial basis. The second condition requires ‘offering the public the opportunity to make use of stay in or otherwise enjoy the dwelling as customers of the trade’. HMRC said this would not be satisfied because the property would no longer be a dwelling after it had been converted for the...