Daniel Ridgway v The Commissioners for HMRC
Decision date: 29 April 2022
Neutral citation: [2022] UKFTT 412 (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 outbuilding (the Old Summer House) acquired with a house was "residential property" for SDLT and whether pre-completion arrangements should be disregarded under anti-avoidance provisions. It found the commercial lease granted two weeks before completion lawfully prevented residential occupation, so Mixed Use Relief did not apply, but held section 75A et seq. treated the lease as a scheme transaction to be disregarded, producing a notional disposal to which Multiple Dwellings Relief applied. The appeal succeeded on tax liability (SDLT reassessed with Multiple Dwellings Relief) but failed as to statutory interest, which remained payable.
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: low
When assessing whether property is "suitable for use as a dwelling" at the effective date, the Tribunal will consider all relevant facts and circumstances then existing, including a lawful pre-completion commercial lease that prevents residential occupation; and section 75A(3)–(4) can treat pre-completion arrangements (such as the grant of that lease) as scheme transactions to be disregarded so as to produce a notional transaction to which reliefs like Multiple Dwellings Relief apply.
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 HMRC guidance (SDLTM00365) is not legally binding and does not create a remedy based on legitimate expectation before the Tribunal, and that absence of planning permission is not necessarily determinative of residential suitability — the physical attributes and overall factual matrix remain central.