Steven Bowen v The Commissioners for HMRC
Decision date: 21 November 2023
Neutral citation: [2023] UKFTT 992 (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 The Granary, a separate but adjacent leasehold, formed part of the grounds of Old Valley Farmhouse for SDLT s116(1) so that the purchase was wholly residential. Applying a multi‑factorial factual assessment (historic and current use, legal constraints, geography and ownership), the Tribunal found The Granary was part of the farmhouse grounds at the effective date. HMRC’s closure notice increasing SDLT was therefore upheld and the appeal 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
The binding ratio is that, for SDLT s116(1), whether adjoining land forms part of a dwelling’s grounds is a question of mixed fact and degree requiring a multi‑factorial assessment (including historic and at‑transaction use, legal restrictions, physical relationship and ownership); and HMRC or capital gains guidance cannot alter the statutory test or impose size limits nor give rise to a binding legitimate expectation.
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 (obiter) that common ownership is necessary but not sufficient to make adjoining land part of a dwelling’s grounds — the land must function as an appendage rather than a standalone asset — and that the absence of a written, binding agreement evidencing commercial use at the effective date weakens a claim that the land was not residential grounds.