This decision is a significant taxpayer win over whether a paddock was part of the grounds of a dwelling house for SDLT mixed-use purposes. The FTT accepted Patrick Cannon’s submissions that, on the evidence, a paddock abutting the garden of a dwelling house did not perform any function in relation to the dwelling house and was subject to a commercial arrangement for the grazing of horses. The paddock was, therefore, not residential property.
Importantly, the FTT declined to follow its previous decision in Brandbros and distinguished the Upper Tribunal’s decision in Ladson Preston and took into account the grant of the grazing lease because it occurred on the same effective date as the taxpayers’ acquisition of the property.
You can read the full decision here