Alex Dower & Anor v The Commissioners for HMRC
Decision date: 26 May 2022
Neutral citation: [2022] UKFTT 170 (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
The Tribunal considered whether an annexe above a detached garage was a second "dwelling" for Stamp Duty Land Tax Multiple Dwellings Relief at the effective date (1 August 2018). The annexe had a separate entrance, utilities and a shower room but no proper kitchen, separate council tax or postal address, and planning permission prohibited its use as a separate dwelling. The Tribunal found the annexe was not suitable for use as a single dwelling at the effective date, dismissed the appeal, and confirmed HMRC's closure notice increasing SDLT by £81,250.
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
For the purpose of SDLT Multiple Dwellings Relief, whether a part of a property is a "dwelling" is an objective, multi-factorial assessment at the effective date focused on physical attributes and legal constraints; self-contained features are necessary but not sufficient, and factors such as planning restrictions, absence of proper kitchen facilities, lack of separate address/council tax and the degree of independence from the main house can determine that the part is not a separate dwelling.
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 indicated that short-term or hotel-like occupation (for example Airbnb) does not alone establish suitability as a dwelling for settled habitation in the SDLT context, and that authority from other statutory areas (e.g. VAT or council tax) may have limited assistance when construing "dwelling" for SDLT purposes.