The grounds of a property were not mixed use by reason of a public right of way, which did not constitute a commercial operation and did not stop it from being residential property. 

On 28 August 2020, the appellants jointly purchased a property for £2,999,000. On 4 September 2020, the appellants filed a stamp duty land tax (SDLT) return declaring that they were due to pay SDLT of £258,630 based on the property being classed as residential. On 18 December 2020, the appellants’ agent wrote to HM Revenue and Customs (HMRC) stating that having analysed the tax return data they were of the view that the property was misclassified as being residential and should have been classed as ‘mixed use’. As a result, they wished to amend the SDLT return in respect of the transaction. The appellants amended the return and sought repayment of £119,180 with interest. The basis for the application for repayment was: