TC09626 - [2025] UKFTT 01067 (TC)

HMRC sought to draw an inference from the planning offer’s report and the condition in the planning consent that the Annexe “remains ancillary” to the Main House as signalling that that was how the Annexe was used prior to 2022 and so at the time of Completion.

The Appellants pointed out that the planning application was after Completion and in any event the reason and wording of the condition was to prevent anything other than residential use and did not prevent the Annexe being occupied as rental accommodation.

We reject HMRC’s argument that the 2022 planning permission and associated offer’s report sheds light on the position. No evidence was produced to us as to the planning conditions, if any, imposed when the garage was originally converted in 1999 or as at Completion. Further, we have heard no argument as to the meaning of “ancillary” for planning purposes, for example as to whether that term might encompass suitability for some uses that might pass the separate dwelling test for MDR purposes. We have to decide matters based on the Property as at Completion and nothing material can be inferred from the 2022 planning position. We reject this argument.