The How Development 1 Ltd v The Commissioners for HMRC

The How Development 1 Ltd v The Commissioners for HMRC

The woodland, though relatively inaccessible and subject to restrictions, formed part of the grounds of The How for purposes of section 116(1)(b) FA 2003, as it provided privacy and security and was not used for commercial purposes; accessibility is a relevant but not determinative factor; procedural errors in the FTT decision were material but did not alter the substantive outcome when the decision was re-made by the Upper Tribunal.

Parties
Appellant: THE HOW DEVELOPMENT 1 LTD; Respondents: THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS
Jurisdiction
England and Wales
Judgment Date
30 March 2023
Procedural Posture
Tax Appeal / Upper Tribunal Judgment
Outcome
Appeal dismissed
Legal Topics
Stamp Duty Land Tax, Residential Property Classification, Section 116 Finance Act 2003, Procedural Fairness
Tax Law Stamp Duty Land Tax Residential Property Classification Section 116 Finance Act 2003 Procedural Fairness

Case Brief

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Parties

THE HOW DEVELOPMENT 1 LTD

Appellant

THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS

Respondents

Procedural Posture

Tax Appeal / Upper Tribunal Judgment

Legal Issues

  1. 1 Whether woodland area was part of 'the grounds' of a property under section 116(1)(b) Finance Act 2003
  2. 2 Whether land must be accessible from dwelling to be considered grounds
  3. 3 Procedural irregularities in FTT decision

Ratio Decidendi

The woodland, though relatively inaccessible and subject to restrictions, formed part of the grounds of The How for purposes of section 116(1)(b) FA 2003, as it provided privacy and security and was not used for commercial purposes; accessibility is a relevant but not determinative factor; procedural errors in the FTT decision were material but did not alter the substantive outcome when the decision was re-made by the Upper Tribunal.

Court Disposition

Appeal dismissed

Orders

  • FTT decision set aside for material errors of law
  • Upper Tribunal re-made the decision: woodland forms part of grounds under section 116(1)(b) FA 2003