Property was suitable as a dwelling

The taxpayer’s business was to buy renovate and resell domestic property. It bought a house from the estate of the owner who had died some time before and paid stamp duty land tax on the basis that the residential rates applied.

It later claimed a refund referring to the First-tier Tribunal decision in Bewley (TC6951) on the basis that the property was unsuitable for use as a dwelling. It did not meet the definition of residential property so the non-residential buildings rate of duty applied.

HMRC refused the claim. The taxpayer appealed.

The First-tier Tribunal said: ‘A building which has the facilities to be a dwelling but which is so structurally unsound or has some other feature (such as asbestos) which precludes repair/renovation then the building will cease to be suitable for use as a dwelling. In essence in such cases the...