Land transaction return was required

The taxpayer implemented a subsale scheme to mitigate stamp duty land tax on the purchase of a property in London. However the scheme was blocked as a result of a retrospective amendment to FA 2003 s 45. This required purchasers who had filed a stamp duty land tax return to amend it or if no return had been submitted HMRC could raise an assessment (FA 2013 s 194(12)).

The taxpayer filed a nil return and also one relating to the grant of the option on which it paid stamp duty land tax on the option price.

HMRC issued a closure notice requiring stamp duty land tax to be paid on the full purchase price of the property and issued a discovery assessment.

The taxpayer appealed saying that when the land transaction return was submitted there was no notifiable transaction so the return was...