Property, including woodland, is entirely residential

In March 2018 the taxpayers bought a property and submitted a stamp duty land tax return on the basis it was residential. The following February the taxpayers’ representative wrote to HMRC requesting that the return be amended on the basis that it included non-residential property - a woodland.

After an enquiry HMRC issued a closure notice stating that the woodland was residential property and the higher rates of SDLT applied.

The taxpayers appealed. They said neither they nor the previous owners used the woodland and it was overgrown with thick brambles and bushes. Only a small part was accessible and in the winter the woodland flooded where it adjoined the garden. In essence the dwelling house with its garage and garden formed a coherent whole on their own. The woodland performed no function in relation to the dwelling house given that it was largely inaccessible and...