The case concerned a SDLT avoidance scheme used by the appellant, Olu Olufote, for the acquisition of a residential property, which he acquired for £325,000.

Olufote appealed to the FTT against a closure notice and revenue amendment issued by HMRC on 10 March 2020, following an enquiry into his SDLT return.

It was discovered that Olufote had purported to ‘sub-sell’ the property for £10,000 to a trust with a completion date of 124 years, arguing that the property was exempt from SDLT payments, as a result.

The main issue raised by the FTT was whether the scheme was effective to avoid SDLT of £9,750, on the property which Olufote occupied as his home.

By a contract for sale dated 12 July 2011, the appellant contracted to acquire the freehold estate in the property from Mr and Mrs Gladdish for £325,000.