Upper Tribunal Tax and Chancery Chamber

UT/2023/000083 - [2024] UKUT 00188 (TCC)

Fecha: 22-Abr-2024

Legislative framework

Legislative framework

All references to legislation in this decision are to provisions of the Finance Act 2003.

Section 42 provides that SDLT is charged on land transactions. A land transaction is defined by section 43 to be “any acquisition of a chargeable interest”. Section 48 defines the chargeable interest as including an estate, interest, right or power in or over land.

Section 49 provides that a land transaction is a chargeable transaction if it is not a transaction that is exempt from charge. There is no exemption that might be applicable in this case.

Section 55 sets out the amount of tax chargeable on the relevant consideration given for a chargeable transaction, ie the chargeable consideration for the transaction. There are differing rates for residential properties and for properties that are wholly or partly non-residential. The section contains two tables and Table A applies “if the relevant land consists entirely of residential property”. Table B applies “if the relevant land consists of or includes land that is not residential property.” Section 55(3)(a) defines the relevant land as “the land an interest in which is the main subject-matter of the transaction”.

10.

Section 43(6) provides that:

“References in this Part to the subject-matter of a land transaction are to the chargeable interest acquired (the ‘main subject matter’), together with any interest or right appurtenant or pertaining to it that is acquired with it.”

11.

Section 116(1) provides as follows:

“116 Meaning of ‘residential property’

(1)

In this Part ‘residential property’ means—

(a)

a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for such use, and

(b)

land that is or forms part of the garden or grounds of a building within paragraph (a) (including any building or structure on such land), or

(c)

an interest in or right over land that subsists for the benefit of a building within paragraph (a) or of land within paragraph (b);

and ‘non-residential property’ means any property that is not residential property.”