Annexe lacked proper kitchen facilities

The taxpayers bought a property on which they paid the stamp duty land tax due. They later amended the return to claim multiple dwellings relief on the basis that the property comprised a main house and an annexe. HMRC refused the claim and the taxpayers appealed.

At the First-tier Tribunal HMRC said the property was a single dwelling of which the annexe formed part. The annexe had no kitchen or infrastructure suitable for daily life. It was not treated separately for council tax nor did it have its own postal address.

The tribunal said the relevant test was in FA 2003 Sch 6B para 7(2). This was a ‘multi-factoral objective assessment of the attributes of the property’. The instant appeal hinged on the meaning of dwelling. The tribunal said in the stamp duty land tax context a residential property used or suitable for use as a...