Bedroom is not suitable for use as a single dwelling

The taxpayers bought a property and filed the stamp duty land tax return on the basis that it did not qualify for multiple dwellings relief. They later amended the return to claim multiple dwellings relief stating the property comprised a main house and a separate annex. HMRC refused the claim and the taxpayers appealed.

The property had been sold as a six-bedroom residential house. The floor plan showed the annex formed part of the ground floor. It had an ensuite bedroom utility room and a lobby. The bedroom and lobby each had lockable doors to the back patio. The doors from the bedroom and the utility room to the main property were not lockable. To enter either room was possible only from the back patio or from the hallway of the main property.

The First-tier Tribunal agreed that some features of the annex made it suitable for use as a...