Andrei Tretyakov v The Commissioners for HMRC
Decision date: 18 December 2024
Neutral citation: [2024] UKFTT 1144 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Mr Tretyakov bought the three‑storey "Bacon Factory" in June 2021 and HMRC assessed the property as entirely residential for SDLT, while he returned it as mixed‑use. The Tribunal found the ground floor, after substantial renovation and based on its physical characteristics and actual use, was suitable for use as part of the dwelling and therefore the whole property "consists entirely of residential property." The appeal was dismissed and HMRC's higher SDLT assessment was upheld.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The decisive legal reasoning is that suitability for residential use is a multi‑factorial question focused on the essential physical characteristics and nature of the part of the property in issue; historic commercial use, planning classification, business‑rates treatment or separate EPCs are not determinative where post‑renovation physical attributes and actual use indicate residential suitability.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal suggested that marketing materials and contractor descriptions can have evidential weight if consistent with other documentary and physical evidence, and that payment of business rates and separate EPCs may be of limited significance absent further factors showing unsuitability for residential use.