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Main house and annex did not each count as a dwelling for multiple dwellings relief purposes

By Mark McLaughlin, October 2021

A main house and annex did not each count as a dwelling for multiple dwellings relief purposes, but together counted as a single dwelling. 

HM Revenue and Customs (HMRC) opened an enquiry into the appellants’ stamp duty land tax (SDLT) return relating to their acquisition of a residential property for £575,000 in April 2016. HMRC concluded that the acquisition did not qualify for multiple dwellings relief (MDR), resulting in a further SDLT liability. The appellants appealed. 

The issue was whether a main house and an annexe acquired as parts of the residential property, each with its own living accommodation, and connected by a short corridor, were both ‘suitable for use as a single dwelling’ such that the acquisition qualified for MDR from SDLT. HMRC’s position was that the main house and the annexe together counted as a single dwelling. 

The First-tier Tribunal (FTT) ([2020] UKFTT 190 (TC))&nbsp

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