Lack of privacy for annex to be a single dwelling

The taxpayer a company bought a property comprising a large family house with a garden swimming pool and annex as an investment. The intention was to let the property as two dwellings. It submitted a stamp duty land tax return on the basis the property was a single dwelling but later wrote to HMRC to amend the return to claim multiple dwellings relief.

HMRC concluded multiple dwellings relief did not apply. The taxpayer appealed.

Mr V a director of the company said the previous owners had lived in the annex before selling and that the current occupier of the annex was unconnected to the occupiers of the main residence. He confirmed the occupier of the annex had no right to use or access the garden or pool although there was nothing to prevent them entering the garden.

It was agreed that there...