The appellants, two sisters, appealed against a closure notice issued by HMRC, which totalled £85,250.

On 19 January 2018, Danielle Sexton and Emma Sexton, jointly acquired a leasehold flat in South Kensington in central London.

As leaseholders they had the right to use the communal garden in the square, subject to the payment of a ‘rate’ or maintenance fee.

Having initially paid SDLT on the basis that the purchase was of a purely residential property, the appellants subsequently claimed relief because the right to use the garden was non-residential in nature.