Nicole Behenna-Renton v The Commissioners for HMRC
Decision date: 3 April 2025
Neutral citation: [2025] UKFTT 403 (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 an annex at Oakridge Farm formed a separate dwelling for Multiple Dwellings Relief (MDR) on a 19 August 2021 purchase; HMRC denied MDR in a closure notice and the purchaser appealed. The tribunal found the Annex had independent access, facilities to meet basic living needs (kitchenette, shower, sleeping area), independent control of utilities, and sufficient privacy and security, so it was suitable for use as a single dwelling. The appeal was allowed and the MDR claim accepted, overturning HMRC’s closure notice and reducing the SDLT liability by the claimed amount.
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: medium
Where a part of a single-title property has independent external access, facilities sufficient for basic living needs (including a kitchenette and shower), and independent control of utilities, it may be suitable for use as a single dwelling for MDR purposes; the absence of separate meters, bills, a postal address or separate occupation does not necessarily prevent that part being treated as a dwelling if it otherwise affords self-sufficiency, privacy and security.
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 observed (non-bindingly) that minor post-completion alterations made in a like-for-like manner (for example replacing a lock or adding curtains) are unlikely to affect suitability as at the effective date, and that a landlord retaining a key under a tenancy agreement does not by itself negate the security element required for a separate dwelling.