Andrew Charles Ferguson & Anor v The Commissioners for HMRC
Decision date: 15 December 2025
Neutral citation: [2026] UKFTT 238 (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
This appeal concerned whether a 0.4‑acre paddock contiguous with Marden Grange formed part of the residential grounds for SDLT when the property was sold on 5 October 2022. The First‑tier Tribunal found the paddock was part of the dwelling’s grounds despite long‑standing commercial grazing by third parties and a personal, terminable licence. HMRC’s amendment (treating the land as residential and applying Table A rates) was upheld and the Fergusons’ appeal was dismissed.
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
Where land is physically contiguous with a dwelling and can only be accessed via the residential grounds, those features can outweigh historic commercial use by third parties in determining that the land forms part of the dwelling’s grounds for SDLT, provided the third party’s rights (here, a personal, terminable grazing licence) do not bind purchasers and do not confer enforceable proprietary rights.
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 judgment observed that renting land at market rent or some third‑party intrusion does not automatically convert residential grounds into non‑residential land; the proper approach is a multi‑factorial assessment focusing on end use and the substance of arrangements, and there is a spectrum of tolerated intrusion before grounds lose their residential character.