Taher and Zahra Suterwalla previously won their SDLT appeal at the First Tier Tribunal (FTT) regarding the mixed-use of a horse paddock in the seven-bedroom house, fitted with an indoor swimming pool and tennis court.

The couple bought the property on 11 December 2020, leasing the paddock out for £1,000 a year to Ms Pragnell for grazing for her livestock. This grazing contract was in place from the day of completion.

For this reason, an SDLT return was filed, reducing the SDLT liability to £169,500. However, HMRC’s assessment increased this by £161,250 to £330,750.

HMRC brought this appeal to the Upper Tribunal on three grounds of appeal. The first being that the FTT ‘declined to apply the UT’s decision in Ladson Preston Ltd v HMRC [2022] UKUT 301 (TCC) in determining whether the relevant land consisted entirely of residential property.’

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