Tribunal rubber stamps £341,000 discount on SDLT after HMRC ‘mixed use’ dispute
Summary
A First-tier Tribunal has upheld a buyer’s treatment of a Hampstead flat block acquisition as mixed use for SDLT purposes, after finding that land occupied by an electrical substation did not form part of the dwelling’s grounds. The decision preserved a £341,750 SDLT saving and turned on the separate commercial function and leasehold status of the substation land.
Why it matters
The case is relevant to surveyors because site layout, title boundaries and ancillary land use can affect whether a property is treated as residential or mixed use for tax purposes. It also highlights the importance of accurately identifying non-residential elements within otherwise residential holdings.
Key points
- Tribunal accepted the electrical substation land was not part of the dwelling’s grounds.
- The acquisition was therefore treated as mixed use for SDLT purposes.
- HMRC had argued the property was wholly residential and sought additional SDLT.
- The substation land was held under a separate leasehold title.
- The ruling turned on the substation’s separate commercial function.
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