Inconsistency in HMRC’s SDLT guidance

Stamp duty land tax is in the spotlight and HMRC has had considerable success in the courts when challenging the classification of subsidiary dwellings for the purposes of multiple dwellings relief (MDR).

The key component argued within most MDR cases is whether the facilities in particular converted buildings and annexes are sufficient for someone to occupy them as a dwelling in their own right.

HMRC’s manuals which have limited authority in themselves are sometimes internally inconsistent. This is evident in HMRC’s definition of a dwelling in the Stamp Duty Land Tax Manual at paragraphs SDLTM00385 and SDLTM00425. There is an element of HMRC appearing to want to have its cake and eat it.

Why do we care?

The classification of a property or part of a property as residential or non-residential not only affects eligibility for MDR but extends to determining the rates...