The appellants, Amarjeet and Taijinder Mudan, appealed against a closure notice used by HMRC on the grounds that their property was not suitable for use as a single dwelling.

On 5 August 2019, the appellants purchased a property in London for £1,755,000. They then paid £177,000 in stamp duty land tax (SDLT) on the basis that it was classed as residential property. 

Mr and Mrs Mudan then wrote to HMRC to amend their SDLT return to show that only £77,250 was due because the property was ‘not suitable for use as a dwelling’.

The appellants argued that the property lacked basic living facilities, and so was not residential property within the meaning of section 116(1) of Finance Act 2003 (FA 2003).