The First-tier Tribunal erred in holding that land acquired was not ‘grounds’ so a property was not entirely ‘residential property’ such that HMRC’s appeal was allowed and the First-tier Tribunal’s decision was remade to dismiss the taxpayer’s SDLT assessment appeal.

On 3 July 2020, the taxpayer (CB) completed the purchase of a property comprising over six acres, which included a dwelling house in the northeastern corner of the plot nearest a road. The dwelling was a two-storey L-shaped building and a large garden. There was also an area of approximately two acres on the western boundary of the plot which was bounded by a river on the western side and by a ‘carrier stream’ on its eastern boundary. A stamp duty land tax (SDLT) return was filed on the basis that the property was residential. However, an amended SDLT return was subsequently filed on the basis that the property included residential and non