The whole property including its woodland is residential

The taxpayer was a property developer that bought ‘The How’ for £2.8m. The property comprised a main house lodge outbuildings and substantial grounds including gardens orchards and a woodland. The taxpayer submitted its stamp duty land tax return on the basis the property was residential. It later sought a refund saying the property was mixed use because the woodland did not subsist for the benefit of the property.

HMRC refused the claim saying the woodland formed part of the garden or grounds of the dwelling within FA 2003 s 116(1)(b).

The taxpayer said the woodland was agricultural land. It was included with the property but it was not accessible from the main house. Further a public footpath ran through it.

In essence the issue was whether the woodland formed part of the grounds of the property. The First-tier Tribunal considered it did. The judge said:...