Q&A: Suterwalla – stamp duty land tax on mixed property

15 July 2024 / John Shallcross

Issue: 4945 / Categories: Comment & Analysis

John Shallcross discusses the Suterwalla case for stamp duty land tax on mixed property where the buyer granted a lease.

The Upper Tribunal (UT) in Suterwalla [2024] UKUT 00188 (TCC) considered the factors to be weighed when assessing whether a property with land counted as ‘residential property’ for stamp duty land tax (SDLT).

The UT held that the First-tier Tribunal (FTT) should not have taken into account a lease granted by the buyer after completion when assessing whether a paddock was part of the ‘grounds’ of a house.

What was the case about?

The Suterwallas bought a house with a tennis court extensive gardens and a paddock. They self-assessed the property as liable to SDLT as mixed property on the basis that the paddock was not part of the ‘grounds’ of the house and so was non-residential. HMRC disagreed and the Suterwallas successfully appealed to the FTT.

The Suterwallas had granted a lease of the paddock to a neighbour immediately after completion. The FTT had taken account...

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