In C Candy v HMRC [2022] EWCA Civ 1447 (3 November 2022) the Court of Appeal (CA) upheld HMRC’s decision that the normal 12-month time limit for amending an SDLT return applies in the situation where a taxpayer claims repayment of SDLT where the contract has not completed.
The taxpayer had entered into two agreements to buy a property via (1) an initial 25-year lease and (2) a subsequent 201-year lease. On 8 October 2012 the taxpayer filed land transaction returns and paid the SDLT. Liability to SDLT had been triggered by the taxpayer starting development work on the property. This constituted taking possession which was ‘substantial performance’ of the contract under the SDLT legislation.
In relation to the second agreement (the assignment of the 201-year lease) the taxpayer paid the first instalment of the purchase price but later assigned his interests in the property to his brother...
