At the time of completion of its acquisition, a property and an annexe comprised two dwellings for SDLT multiple dwellings relief purposes, and not a single dwelling as HMRC had argued.
The appellants purchased a property for £797,000 on 23 August 2021. The property comprised the main property and an annexe. The annexe consisted of: (a) a kitchen comprising a sink, food preparation surfaces, cupboards and an electrical socket for white goods and associated plumbing. It did not contain an oven or hob; (b) a ground floor shower room with a toilet, sink and shower; and (c) a studio room or office or sitting room which could be used as a living space or bedroom.
The annexe could be accessed in three ways: (a) from the driveway of the property, through an external door into the garage and a further lockable door leading to the annexe. Occupiers of the main property could not access the garage internally from the main property but