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Multiple dwellings relief: Property and basement annex did not each count as a dwelling

By Mark McLaughlin, November 2020

A property in London was jointly acquired by the appellants in March 2016 for £1,920,000. On the same day, a stamp duty land tax (SDLT) return was completed and filed with HM Revenue and Customs (HMRC) on the basis that the property was a single residential property. No relief was claimed and the SDLT shown on the return of £144,150 was paid. 

The property consisted of a main house and an annex. In April 2017, the appellants were advised on the basis of the legislation and HMRC guidance applicable at the time, that an application could have been made for multiple dwellings relief (MDR) (under FA 2003, Sch 6B). Their advisers amended the appellants’ SDLT return and claimed an SDLT repayment of £64,650. HMRC rejected it. The appellants appealed. 

The First-tier Tribunal (FTT) noted although HMRC accepted that the annex had some features that were also present in self-contained living

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