In SDLT, HMRC sometimes changes its published guidance and may challenge transactions that were self-assessed or structured in reliance on the previous guidance using the points adopted in the revised guidance, even though that was not published at the time of the transaction concerned. To compound the taxpayer’s difficulties, the First-tier Tribunal may on occasion then decide the appeal on a point of its own motion that was not raised by either side and on which they were not given an opportunity to make representations. The recent decision in Ridgway raises these issues. In that case, the FTT held that although the SDLT mixed use rates were in principle applicable, the anti-avoidance rule in FA 2003 s 75A was engaged with the effect that a commercial lease was disregarded and the residential rates applied.
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In SDLT, HMRC sometimes changes its published guidance and may challenge transactions that were self-assessed or structured in reliance on the previous guidance using the points adopted in the revised guidance, even though that was not published at the time of the transaction concerned. To compound the taxpayer’s difficulties, the First-tier Tribunal may on occasion then decide the appeal on a point of its own motion that was not raised by either side and on which they were not given an opportunity to make representations. The recent decision in Ridgway raises these issues. In that case, the FTT held that although the SDLT mixed use rates were in principle applicable, the anti-avoidance rule in FA 2003 s 75A was engaged with the effect that a commercial lease was disregarded and the residential rates applied.
If you are not a subscriber, subscribe now to read this content.
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