KOZLOWSKI v HMRC TC/2023/00327

This was an SDLT mixed-use claim from a respected FTT judge who importantly decided that (1) a property must fall within section 116(1) as residential before Schedule 4ZA can apply to it; (2) genuine commercial use of land that would otherwise be garden or grounds of a dwelling takes it out of section 116(1)(b) so that it is not residential; and (3) section 116(1)(c) relates to rights attaching to the property acquired which are exercisable over third party land and not the purchased land itself. HMRC had firmly resisted all three points, but the Judge agreed with Patrick Cannon’s submissions.

The Judge did, however, agree with HMRC that the property is to be judged as residential or not at the actual time of completion and not by reference to other events on the day of completion, in this case, the grant of a lease over a garage immediately after completion.

You can read the full decision here

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