A building which was in the process of being constructed or adapted for use as a dwelling at the effective date of the transaction fell within the definition of residential property and was subject to the higher residential rates of stamp duty land tax.
On 24 May 2021, the appellant purchased a property (EP), together with a property which backed onto EP (EM). He submitted a stamp duty land tax (SDLT) return and paid SDLT on the basis that the property was residential. On 18 October 2021, the appellant’s agents submitted a claim for SDLT overpaid on the basis that the appellant had purchased non-residential property. HM Revenue and Customs (HMRC) refused the claim on the basis that the original classification of the property as residential was correct as the building was in the process of being constructed or adapted for use as a dwelling at the effective date of the transaction (EDT). The appellant appealed.
EP and EM (E) was previously