This is an appeal to the Upper Tribunal about Multiple Dwellings Relief for SDLT purposes (“MDR”), in which Patrick Cannon represented the taxpayers. The UT was asked to decide (1) when buildings were in the process of being constructed for use as dwellings for MDR purposes and (2) whether activities undertaken by the purchaser on the effective date of the transaction but after the actual time of completion on that day were relevant to whether the chargeable interest acquired consisted of dwellings for MDR purposes.
The UT was found against the taxpayers on both points. The UT’s decision contains some useful analysis of the significance of the grant of planning permission but left it to future FTTs to decide what level of physical manifestation of building work is required before a chargeable interest can be said to consist of dwellings in the process of construction or adaptation as such. Hence the relevance of the “muddy” and “golden” bricks remains a live issue for MDR.
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