Property sold as one lot

The taxpayer bought a property in January 2019. It comprised of two Land Registry titles – one was formed of a six bedroom house over two storeys a double garage with an office/studio above it a two bedroom self-contained barn an outbuilding containing two stables and a tack room and a garden – altogether about 0.5 acres. The second title represented a paddock of about two acres.

He submitted a stamp duty land tax return on the basis the property was mixed use. HMRC disagreed saying the residential rate applied to the whole property. The taxpayer then submitted a claim for multiple dwellings relief which HMRC also rejected.

The taxpayer appealed.

The First-tier Tribunal noted there was no quantitative limit on the extent of the garden or grounds; likewise there was no requirement for it to provide reasonable enjoyment. It found that the paddock and the office/studio...