Disputed evidence would not have altered the outcome

The taxpayers bought a property consisting of a main house an annex garage and summerhouse. The main house and annex had living sleeping washing and kitchen facilities. They were connected by an internal corridor with door jambs where a door could be hung. The annex did not have a separate letter box utility supply or council tax bill. There was also a restrictive covenant over the land to prevent more than one bungalow being built on it.

The taxpayers claimed multiple dwellings relief (FA 2003 Sch 6B para 7) in their stamp duty land tax return but HMRC said the property did not qualify. Dismissing the taxpayers’ appeal the First-tier Tribunal said the main house and annex counted as a single dwelling so multiple dwellings relief did not apply. They appealed to the Upper Tribunal on the basis the lower tribunal had...