Case Studies
How we helped others with their SDLT
Read some real life case studies of how we helped others with their SDLT.
Property Tax Case Study
Compliance check taken care of
Relatus acted for a client who had received a compliance check following an amendment of his SDLT return by his conveyancer to claim Multiple Dwelling Relief. After receiving a response to the initial check HMRC formed the view that the relief did not apply and the conveyancing solicitor had advised the client to repay the refund to HMRC together with interest. The client did as he was advised but then feeling that HMRC’s investigation was not within the remit of his conveyancer the client approached us for our advice. We saw immediately that the compliance check had been issued outside the enquiry window and was therefore invalid.
We wrote to the compliance officer pointing out his error and eventually HMRC cancelled the check resulting in the client being repaid the original amount plus interest. The client was also able to recover our fee from their conveyancer who agreed that the matter was outside their area of expertise. It is important to seek advice from a qualified advisor who can advise not only whether the return or amendment was valid but who will also ensure that HMRC have opened and issued a check correctly.
Property Tax Case Study
A successful Tribunal appeal
We claimed MDR on behalf of Mr Packman due to the fact that his property had a separate annex at the bottom of the garden. The annex was accessed via a separate side gate which did not involve passing any doors or windows of the main dwelling and had a full kitchen, bathroom, living room and bedroom. The Annex also had a separate boiler and fuse box and was separately rated for council tax. Mr Packman had also provided evidence of the fact that a tenant had occupied the Annex prior to his purchase. HMRC issued a compliance check which we dealt with on behalf of the client and then issued a closure notice refusing MDR on the basis that the Annex lacked privacy and could only be occupied by family members. We appealed the decision with no change in stance and also requested an internal review which merely confirmed the decision of the previous officer.
We therefore lodged an appeal to the First Tier Tax Tribunal and represented Mr Packman at the Hearing. HMRC maintained that the Annex lacked privacy as a result of its location and disputed that it could have been occupied by an unrelated tenant even when faced with Mr Packman’s own evidence to the contrary. HMRC felt that the lack of privacy was sufficient to prevent MDR being claimed despite the numerous supporting factors. The Tribunal did not agree with HMRC and held that MDR was applicable. In his decision the Judge made it clear that there can be some weaknesses without preventing the relief and in this case the privacy infringement relied on by HMRC was not enough to render the Annex unsuitable for use as a dwelling.
Property Tax Case Study
A case of missed mixed use
A client purchased a property which consisted of 3 residential dwellings and 2 commercial units. They had paid SDLT using the non-residential rate of SDLT due to its mixed nature however, the fact that the property had more than 1 dwelling meant that multiple dwelling relief was also applicable to the residential element of the property. Relatus amended the SDLT return and the client received a refund of overpaid SDLT.
Property Tax Case Study
Initially misadvised on probate relief
A company we had acted for previously contacted us after they had purchased a property from probate with the intention of refurbishing the property and selling it. They had been advised to pay SDLT at the residential rate with no relief or exemptions. After discussing the transaction and the companies intentions it was clear that the purchase was exempt from SDLT. Relatus amended the SDLT return and claimed a full refund of SDLT.
Want to know more?
If you have any questions about your property tax, then get in touch with our team here at Relatus who will be happy to help.
