A building was, at the effective date of a transaction, in the process of being constructed or adapted for use as a dwelling, which accordingly fell within the definition of ‘residential property’ and was subject to the higher residential rates of stamp duty land tax. 

The appellant purchased a partly completed development (Elvaston) in London with planning permission for conversion into a five-bedroom house. The effective date of the transaction (EDT) was 24 May 2021. He submitted a stamp duty land tax (SDLT) return and paid tax on the basis that the property was residential. On 18 October 2021, the appellant’s agents claimed a repayment of overpaid SDLT on the basis that the appellant had purchased non-residential property. Following an enquiry into the overpayment claim, HM Revenue and Customs (HMRC) refused the overpayment relief claim on the basis that the original classification of the property as residential was correct. The