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In (1) David Hyman and Sally Hyman (2) Pensfold (3) Craig Goodfellow and Julie Goodfellow v HMRC [2021] UKUT0068 the Upper Tribunal (UT) considered the definition of residential property and determined that residential rates of Stamp Duty Land Tax (SDLT) should apply to the purchase of three different properties that all included substantial plots of land.

This case was a joint appeal by the appellants against FTT decisions which determined that land sold with a house was subject to SDLT at residential rates. The appeal was on the grounds that the FTT had erred in law, and that not all the land attached to the properties should be viewed as residential property for SDLT purposes.

The Law

SDLT is charged on the acquisition of a chargeable interest in land. 

If the land consists entirely of residential property, then SDLT is charged at residential rates whereas if the relevant land consists of or includes land that is not residential property SDLT is charged non-residential rates.

Background

Details of the properties in each case were as follows:

The FTT decisions

Hyman; the FTT found that the entire property was residential property as:

Pensfold; the FTT found that the entire property was residential property as:

Goodfellow; the FTT found that the entire property was residential property as:

UT decision

The UT dismissed the appeals as:

Useful guides on this topic

SDLT residential definition not as narrow as for CGT
In Mr David Hyman and Mrs Sally Hyman [2019] TC7271 a Stamp Duty Land Tax claim that a property sitting in 3.5 acres of land was ‘mixed use’ and not residential failed.

SDLT: Residential property & dwellings
What is residential property for Stamp Duty Land Tax (SDLT)? What tax rate applies?

External links

(1) David Hyman and Sally Hyman (2) Pensfold (3) Craig Goodfellow and Julie Goodfellow v HMRC [2021] UKUT0068

 


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