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 appellant’s stamp duty land tax (SDLT) return relating to the appellants’ 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 in the appeal 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)