The First Tier Tribunal (FTT) dismissed an appeal from John Mason who claimed that the property he had purchased was eligible for multiple dwellings relief, but the tribunal found that the detached annexe in the grounds of the property he had purchased was not suitable for use as a single dwelling and therefore would not qualify.

Mason and his wife purchased a property for £1.9m with the finalised date, the effective date of the transaction, of the sale in February 2019. The couple completed the stamp duty land tax return in March 2019.

The self assessment claimed that the tax due on the property was £77,500 on the basis that the purchase was a transaction of ‘at least two dwellings’ due to an annexe in the garden. As part of schedule 6 Finance Act 2003, this would qualify the purchase for multiple dwellings relief (MDR).

HM