Simon and Joanne Holding went to the First Tier Tribunal (FTT) to dispute a tax demand from HMRC for stamp duty land tax (SDLT), arguing that the grounds of their property should be liable for non-residential SDLT.

The dispute related to the purchase of a £4.6m five-bedroom Georgian country house with a cottage, staff flat and extensive equestrian facilities, set in 40 acres of land. Some of the land was made up of seven railed horse paddocks and there was a separate building housing an indoor floodlit horse arena.

Approximately 24 acres of the property was fields, which the appellants argued were not part of the grounds of the dwelling under section 116(1)(b) of Finance Act 2003.