Windfall for mixed-use buildings

Taxpayers buying mixed-use buildings and that have bought such buildings in the past four years may be due a tax windfall.

Sean Randall a partner at Blick Rothenberg said: ‘In early November 2020 HMRC updated its internal guidance Stamp Duty Land Tax Manual to confirm that when claiming the relief on purchases of mixed-use buildings the tax should be calculated without using the 3% surcharge even for purchases made by companies. This means that the effective tax rate might be lower than 3% and those that claimed the relief within the past four years - having paid tax including the 3% surcharge - are due a refund.’

He added: ‘HMRC’s position is the correct interpretation of the rules but until early November 2020 we were unsure whether HMRC would adopt a different interpretation. We now know that they will not. This should...