A main house and annexe did not each count as a dwelling for stamp duty land tax multiple dwellings relief purposes but constituted a single dwelling.

In April 2017, the appellants purchased a residential property in Hampshire for £915,000. SDLT liability based on the appellants' original SDLT return was £35,750. In May 2018, a request was received by HM Revenue and Customs (HMRC) for an amendment to the appellants’ SDLT return to include a claim for multiple dwellings relief (MDR). 

HMRC initially refunded SDLT of £10,000 to the appellants but subsequently opened an enquiry into the SDLT return. HMRC concluded that the property did not qualify for MDR. The appellants appealed. 

The property was listed as a freehold, detached house consisting of six bedrooms and included an annexe. The annexe had a separate entrance door, a separate kitchen area, and a separate garden. The internal doors to the annexe