Higher rate applies to new properties

This case concerns two sets of taxpayers because the appeals concerned the application of the same statutory rules.

In May 2017 PH and TP acquired a property and submitted a stamp duty land tax return which included the higher rate for additional dwellings. They later sought to reclaim the higher rate tax paid on the basis that the property replaced their former main residence.

In June 2017 AS and AR bought a property on which they also paid and later reclaimed the higher rate for additional dwellings saying the new property was a replacement for a main residence.

In both cases HMRC refused.

The taxpayers appealed.

In both instances the taxpayers within three years of the earlier transactions transferred ownership of their existing properties into a trust with themselves as trustees and beneficiaries.

Legislation was introduced to prevent relief when a person –...