Significant wins by the Property Tax Team on the Jacqui Pynn SDLT case and Multiple Dwellings Relief

A significant win for the team and the Jacqui Pynn SDLT case

The property tax team have just had another significant SDLT win on behalf of an individual client.

The client was in the process of acquiring a high value property for £2.9 million which included a main house, an annexe and a paddock. Tom and the team were approached via a solicitor contact to support on the Stamp Duty Land Tax (SDLT) points with a view that Multiple Dwellings Relief (‘MDR’) may be identified that would have generated a saving of £50,000 in SDLT on the purchase. Tom and the team ascertained that there was a good likelihood that the property could be argued to be mixed use for SDLT purposes which would drive the SDLT saving up to £134,000!

As expected, HMRC enquired into the SDLT position some 18 months ago. HMRC have been winning case after case in this area of mixed use and garden and grounds for SDLT tax purposes, so it is rare to secure a win here.

However, after 18 months of tenacious work in undermining HMRCs case and position Tom and the team successfully obtained a closure notice on behalf of their client from HMRC agreeing the mixed-use position for SDLT purposes. The client is therefore delighted to have secured the £134,000 savings and all without having to go to tax tribunals.

This area of SDLT is a highly complex and contentious and is often successfully challenged by HMRC. It is a testament to the skills we have at LB Group within our tax teams as to the high level we can operate at. The team have done a great job and the client is rightly so ecstatic with the result of our work on their behalf.

Another significant case win for the Property Tax Team at LB Group

As you will all no doubt be aware from 1st June 2024 MDR for SDLT has been abolished. It is likely to be abolished in Wales but is still available for Welsh property at the moment and will likely continue to be available for Scottish property for some time. So please do remember Welsh and Scottish property transactions can still benefit from MDR!

The team were approached by a client who had ideas that they may qualify for MDR for SDLT on a recent purchase where they acquired a high value home for their family. The home had significant land attached and on that land was a Shepherds Hut!

The property tax team have successfully had approval from HMRC that MDR does apply to the transaction and have saved the client over £84,000 in SDLT on their property purchase on a shepherd’s hut! This was achieved by presenting a very strong case to HMRC and after their enquiries, they couldn’t refuse the relief based on the facts.

Needless to say, the client is thrilled with the £84,000 savings and all just in the nick of time before the abolition of MDR!!

If your clients are considering buying or selling residential or commercial property of any value for any reason and would like specialist advice to ensure the best tax position, please refer them over to Tom and the Property Tax Team at propertytax@lbgroupltd.com