.png)
.png)
In January 2022 the taxpayer bought a property which included a garage. On the day of completion he let the garage for £50 a month. He submitted a stamp duty land tax return on the basis the whole property was a residential. A few days later he amended the return to say the mixed use rates applied. HMRC issued a refund.
In August HMRC opened an enquiry and later issued a closure notice concluding that the property was wholly residential and that a further £134 250 tax was due.
The taxpayer appealed.
In essence counsel for the taxpayer said it was a timing issue. It was necessary to consider the status of the property at the end of the ‘effective date’ of the transaction and as there was a commercial lease over the garage in place at the end of the effective date the property was mixed...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
