HMRC v Candy

In HMRC v C Candy [2021] UKUT 170 (TCC) (12 July 2021) the Upper Tribunal (UT) allowed HMRC’s appeal. It held that an amendment to an SDLT return to claim a repayment of SDLT when a contract is rescinded or annulled after it has been substantially performed (within FA 2003 s 44(9)) must take place within the usual time limit of 12 months from the filing date of the SDLT return.

The taxpayer acquired a property in London via a double lease structure. The taxpayer entered into an agreement for lease for the first lease and an agreement for the assignment of the second lease both of which were substantially performed by the taxpayer taking possession to develop the property. The taxpayer submitted two SDLT returns and paid SDLT in respect of both agreements. The first lease was granted to the taxpayer. The taxpayer then assigned the first...