TC09559 - [2025] UKFTT 00752 (TC)

This is an appeal against the conclusion of a closure notice dated 2 February 2024 (the Closure Notice) issued by HMRC under para 23, sch 10 Finance Act 2003. The Closure Notice amended the Appellants’ Stamp Duty Land Tax (SDLT) return, as HMRC concluded that the Appellants’ property acquisition (the Transaction) did not qualify for the Multiple Dwellings Relief (MDR) claimed by the Appellants.

The SDLT return submitted (after amendment) by the Appellants showed tax due of £14,750. The Closure Notice amended that figure to £27,250, increasing the SDLT due by £12,500. There is no dispute about these figures.

The form of the hearing was V (video) and all parties attended remotely via Microsoft Teams. We referred to a hearing bundle of 187 pages, which included the Appellants’ notice of appeal and fully particularised grounds of appeal, the witness statement of Mr Steven Smith, and the Respondents’ statement of case. We also referred to an authorities bundle of 294 pages, and the Respondents and Appellants provided helpful skeleton arguments.

At the hearing, we heard witness evidence from Mr Smith, who provided a straightforward account focusing on the physical attributes of the buildings acquired in the Transaction and their fittings, utilities and access, and his evidence was uncontroversial. We were also provided with several photographs, plans and marketing materials relating to the property.

Prior notice of the hearing had been published on the gov.uk website, with information about how representatives of the media or members of the public could apply to join the hearing remotely in order to observe the proceedings. As such, the hearing was held in public.