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UK Housing News

Renowned Stamp Duty Experts Cornerstone Tax Win HMRC Appeal, Securing £225,000 Stamp Duty Saving for Mixed-Use Property Client

Cornerstone Tax's appeal initiates further dialogue on what constitutes “Mixed-Use” for SDLT and the benefits that a successful claim can bring

David Hannah, Group Chairman of Cornerstone Tax, is available to discuss the ongoing debate about the definition of "Mixed-Use" concerning SDLT refunds

Cornerstone Tax, the UK's leading property tax expert, has successfully restored one of its client's original Stamp Duty savings of £225,000, after a HMRC objection. This victory provides further scrutiny about the definition of "Mixed-Use" for SDLT and underscores the advantages of a successful claim.

Cornerstone's client acquired Durford House, a property set amongst 16.6 acres of land and comprising of 6 bedrooms, a triple garage, outbuildings, 4 acres of formal gardens and 12 acres of mature woodland. By claiming mixed-use in this transaction, Cornerstone was able to help secure £225,000 in savings. In response to this action, HMRC objected to this claim and, therefore, the matter went to appeal on the issue of whether the woodland formed part of the garden and grounds of the dwelling house.

The case, heard on May 9, 2024, highlighted the following evidence:

  • The general public walked through the woodland, it had become a favoured spot for the local community.

  • Access to the woods was open, there were no walls or fencing.

  • There were also public footpaths established by right over a period of time, although the public freely used the woodland and was not restricted to the footpaths, they could be clearly heard in the private garden.

  • Along with other residents, Cornerstone's client was also liable to make payments to maintain the woodland and abide by the decisions of the management company.

The FTT concluded that the woods did not form a positive function to the dwelling house and, therefore, decided in favour of the appellants. After another victorious appeal for Cornerstone, David Hannah, Group Chairman is available to discuss the following:

  • The ongoing debate on what constitutes mixed-use in issues concerning SDLT

  • Why blogs and articles by HMRC, The Law Society and the CIOT, which aim to avoid making claims that deter legitimate ones, demonstrate the deep concerns of these parties that such issues are frequently overlooked by non-specialised professionals

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