--- title: "Victory for Taxpayer in HMRC £47K Stamp Duty Dispute" url: https://taxdisputes.co.uk/2024/07/victory-for-taxpayer-in-hmrc-47k-stamp-duty-dispute/ date: 2024-07-15 modified: 2026-06-02 author: "Shumaim Rizvi" description: "In a recent ruling, the First Tier Tribunal (FTT) sided with Anne-Marie Hurst, owner of the 16th-century Grade II listed Sortridge Manor, in a dispute against HMRC over a £47,000 stamp duty bill. The tribunal found that the property, partly used for holiday accommodations and leased meadow, qualified for non-residential SDLT rates. This decision highlights the importance of detailed evidence in property use disputes and sets a significant precedent for homeowners challenging HMRC assessments. LEXLAW specialises in tax law, offering expert advice and robust representation to navigate such complex disputes and protect your interests." categories: - "Appeals" - "First Tier Tax Tribunal" - "HMRC" - "HMRC Assessments" - "HMRC Campaigns" - "HMRC Penalty" - "Report on HMRC" - "SDLT" - "Stamp Duty" - "Tax Law" tags: - "Advice for Taxpayers" - "Appeals" - "Challenge HMRC decision" - "First Tier Tax Tribunal" - "First-tier Tribunal" - "HMRC" - "HMRC appeal" - "HMRC assessment" - "HMRC Investigations" - "HMRC Tax Appeal" - "HMRC Tax Disputes" - "SDLT" - "Stamp Duty" - "Tribunal" - "tribunal appeal" - "Tribunal Hearing representation" - "Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009" - "Tribunal strategy" image: https://taxdisputes.co.uk/wp-content/uploads/2024/07/HMRC-TAX-DISPUTE-VICTORY-SDLT-tribunal-win-success-LEXLAW-Solicitors.jpg word_count: 699 --- # Victory for Taxpayer in HMRC £47K Stamp Duty Dispute In a recent landmark decision, the [First Tier Tribunal (FTT)](https://www.judiciary.uk/courts-and-tribunals/tribunals/first-tier-tribunal/) ruled in favour of Anne-Marie Hurst, the owner of a 16th-century Grade II listed [manor house](https://sortridgemanor.co.uk/), in a dispute with [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) over a £47,000 stamp duty bill. This case highlights important aspects of [stamp duty land tax (SDLT)](https://www.gov.uk/stamp-duty-land-tax) assessments and the nuances of property use classifications. ## Anne-Marie Hurst v HMRC The dispute centered on whether part of Hurst's 11-bedroom property, [Sortridge Manor](https://sortridgemanor.co.uk/) in Devon, was used for commercial purposes. The house was described by [Country Life](https://www.countrylife.co.uk/property/a-house-that-blends-five-centuries-worth-of-architecture-set-on-the-shores-of-a-famous-salmon-river-in-devon-227498) as "*A house that blends five centuries worth of architecture, set on the shores of a famous salmon river in Devon*." HMRC argued that the residential rate of SDLT applied, disputing the non-residential rate originally paid. The tribunal case involved a detailed examination of the property's use and the evidence supporting Hurst's claim. ## HMRC's Position on SDLT HMRC issued a closure notice on August 17, 2022, demanding an additional £47,750 in SDLT. The tax authority contended that the property was purely residential, challenging Hurst’s assertion that part of it operated as a hotel or inn. HMRC lawyer Mr. Thompson-Jones argued that the SDLT charge should be straightforward without delving into subjective intentions about the property's use. ## Evidence Presented to Tax Tribunal Hurst provided evidence that she negotiated her mortgage based on offering holiday accommodation, with approximately 30% of the manor house dedicated to self-catering stays under the name Leat House. The accommodation was marketed on various platforms and featured separate access and amenities. Additionally, Hurst formalised an arrangement with a local farmer to lease a meadow for £500 a year for grazing and hay production, further supporting her claim of commercial use. ## Tax Tribunal's Findings Against HMRC Despite HMRC's scepticism regarding the viability of the holiday accommodation business and the sporadic nature of bookings, [Tribunal Judge Amanda Brown KC](https://www.judiciary.uk/appointments-and-retirements/appointment-as-a-judge-of-the-first-tier-tribunal-tax-chamber-brown/) found Hurst's claims credible. The judge highlighted that there was no evidence of financial pressure on the previous owners and that investments had been made to adapt the property for commercial use. ## Appeal Allowed - Additional SDLT nullified The tribunal's critical question was whether the scale of the accommodation activities constituted commercial use with sufficient permanence and continuity. Judge Brown ruled in favour of Hurst, stating that the property was used as an establishment similar to a hotel or inn, thereby not qualifying as solely residential. This ruling nullified the additional SDLT charge and allowed Hurst's appeal. ## Litigating HMRC Stamp Duty Disputes This decision underscores the importance of providing comprehensive evidence when disputing HMRC assessments. Property owners should ensure that any commercial activities are well-documented and meet the necessary thresholds for tax classifications. Navigating complex tax disputes with HMRC can be daunting. [LEXLAW](https://lexlaw.co.uk/) specialises in tax law and has extensive experience representing clients in tribunal cases. We offer tailored advice and robust representation to ensure your interests are protected. If you're facing an HMRC assessment or need assistance with SDLT matters, contact us for expert guidance and support. ## Precedent for challenging HMRC's SDLT Assessments The FTT's ruling in favour of Anne-Marie Hurst sets a significant precedent for property owners challenging HMRC's SDLT assessments. By understanding the intricacies of property use and providing clear evidence, owners can successfully defend against unwarranted tax demands. For personalised advice on tax disputes and property classifications, reach out to our legal experts today. ## Expert London Tax Lawyers If you need [HMRC Tax Disputes advice](https://taxdisputes.co.uk/), we are available to aid you at every stage of the HMRC appeals process. Members of [our legal team](https://lexlaw.co.uk/) have first-hand experience and working knowledge of the internal workings of HMRC. We can provide you with the very best representation in negotiations, throughout the HMRC internal review process and in front of the Tax Tribunal. [Our team](https://taxdisputes.co.uk/) specialises in successfully [challenging HMRC decisions](https://taxdisputes.co.uk/hmrc-tax-appeals/) and will assist you in every aspect including developing a strategy. We are experts in adeptly presenting evidence and employing bespoke arguments combining the facts of your case, previous cases and current legislation to ensure your appeal is a successful one. We provide urgent advice and representation to clients from our unique expert team of established tax and duties specialist solicitors and barristers with [a proven track record](https://taxdisputes.co.uk/success/) of delivering authoritative results. Just call us on 0207 1830 529, or email [contact@lexlaw.co.uk](mailto:contact@lexlaw.co.uk?subject=Tax%20Query).