TC09626 - [2025] UKFTT 01067 (TC)

In determining whether the Main House and the Annexe are separate dwellings and each “suitable for use as a single dwelling” within paragraph 7(2)(a) we take as a starting point the principles set out by the Upper Tribunal in Fiander. Thus,the test must be determined from the perspective of a reasonable objective observer and is to be applied as at the effective date. Each case is to be determined on its facts, applying the multi-factorial test of weighing all the facts and circumstances (decision of this Tribunal in Fiander at [51] endorsed by the Upper Tribunal at [62]).

In our view considering and applying the multifactorial test in Fiander, a reasonable objective observer would identify the following principal features of the Annexe as pointing towards their being suitable for use as separate dwellings:

Factors pointing towards the properties not being suitable for use as separate dwellings were:

We find the use and sharing of the hallway the most difficult aspect of this appeal, all other negative issues being relatively minor and many of those factors pointing towards there being two dwellings being in our view strong factors.

As we have found, the most practical option would be to provide that the hallway was communal and that the Main House had exclusive use of the garden. Even then it is entirely possible that the fact the occupier of the Annexe would have access to the hallway due to the one-way bolt on the door between the Annexe and the hallway and the need to lock the back door prevent access to the garden would cause occupants of the Main House real concerns.

Decision

Applying the multi-factorial test in Fiander, and taking into account all the features described above, we find that the Main House and the Annexe are suitable for use as single dwellings within the meaning of paragraph 7(2)(a) on the basis of the rear hallway being communal. Whilst the rear hallway cases difficulties we find that a number of other factors point strongly towards the House and the Annexe both being suitable for use as a single dwelling.

We therefore find that the purchase of the Property is within Schedule 6B Finance Act 2003 as the main subject-matter consists of an interest in at least two dwellings.

Accordingly, we allow the Appellant’s appeal.

This document contains full findings of fact and reasons for the decision. Any party dissatisfied with this decision has a right to apply for permission to appeal against it pursuant to Rule 39 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009. The application must be received by this Tribunal not later than 56 days after this decision is sent to that party. The parties are referred to “Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)” which accompanies and forms part of this decision notice.