Lane formed part of the property

In August 2020 the taxpayers bought a property and filed a stamp duty land tax return on the basis that it was residential. In December 2020 they told HMRC they wished to amend the return because the property should be classified as mixed use. This was on the basis that a footpath which ran across the rear of the property was classed by the local highway agency as a public highway so the taxpayers – as owners of the land – had to ensure the footpath was safe for people to use. They also said it restricted their use of land and did not contribute to their reasonable enjoyment of the dwelling.

HMRC refused the reclassification. The taxpayers appealed. They claimed that because the highway was used by a farmer to gain access to his farm this constituted commercial use of the land.

The First-tier Tribunal noted that...