This was a mixed residential and non-residential use SDLT appeal involving the acquisition of a flat with the right to use a communal garden in which Patrick Cannon represented the appellant taxpayer. In deciding that the acquisition was wholly residential and therefore taxable at the rates in Table A of section 55 FA 2003, the tribunal analysed the meaning of “the main subject matter” in section 43(6) FA 2003 in the context of easements over adjoining land and found that if an easement is the only interest or right acquired, then it will be the main subject matter.
However, where the easement is appurtenant or pertaining to another interest which is acquired, then it is the other right that is the main subject matter of the transaction. It is the character of that other right that determines whether the transaction is residential or mixed use.
You can read the full decision here.
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