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Acquisitions of freehold property and right to use nearby communal gardens were not linked transactions

By Mark McLaughlin, October 2021

The acquisition of a freehold property and the right to use nearby communal garden were not linked transactions as there were different vendors, and the relevant land did not include non-residential property. 

In August 2018, the appellant submitted a stamp duty land tax (SDLT) return, self-assessing tax of £1,320,000 based on the rates for ‘residential’ properties. He subsequently submitted an amended SDLT return based on the rates for ‘mixed-use’ properties, on the basis that the property in question had the benefit of a right to use a communal garden; the self-assessment was reduced by £861,750. 

Following an enquiry into the appellant’s SDLT return, HM Revenue and Customs (HMRC) issued a closure notice stating SDLT was due at the residential rate.

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