Property was suitable for use as a dwelling

In August 2019 the taxpayers bought a property and paid the stamp duty land tax on the basis that it was residential. However the property required considerable work to make it suitable for a young family so the taxpayers did not move in until May 2020.

The taxpayers said that the work carried out included rewiring installing a new boiler having a new roof repairing broken windows gutting the kitchen tanking the basement and clearing lots of rubbish from the house and garden.

The taxpayers said that until all the work had been done the building was not suitable for use as a dwelling and so was not a residential property within FA 2003 s 116(1). They amended their stamp duty land tax return accordingly.

HMRC disagreed. The taxpayers appealed.

The First-tier Tribunal found Mr M - who gave evidence to the...