Higher-rate land transaction tax was due on the purchase of a neighbouring terrace property where the partition wall was removed so that there would be a single property, but the resulting penalty calculated by the WRA was too high and was reduced accordingly. 

The appellant and his wife (Mr and Mrs J) were owner-occupiers of an end-of-terrace property (DF), which was their main residence. DF and the neighbouring terrace property (DH) shared a partition wall and part of DF extended above DH. Chimney cavities for DH were located on top of the roof covering DF. A third terrace property (DC) shared a partition wall with DH. 

On 25 October 2019, Mr and Mrs J purchased DH for £80,000 (exchange and completion took place on the same day). Mr and Mrs J immediately set about removing the partition between DF and DH so there would be a single property. A dispute subsequently arose with the Welsh Revenue Authority (WRA) about whether higher-rate