Viewed objectively the main house and annexe were a single dwelling

The taxpayers bought a house with a separate annexe on the first floor. The annexe contained a bedroom bathroom and kitchen. It had its own boiler electricity and doorbell. The annexe and the main house shared a front door a hallway and stairs. The doors leading off the communal hallway were lockable.

The taxpayers submitted a stamp duty land tax return when they purchased the property but later amended it to claim multiple dwellings relief. This was on the basis that they had acquired two single dwellings. After an enquiry HMRC refused the claim. The taxpayers appealed.

The first issue for the First-tier Tribunal was whether HMRC raised the enquiry within the nine-month period. The tribunal said the enquiry period began when the signed and dated documents were provided to HMRC. The department had begun its enquiry within the nine-month period after it received these documents...