Fish Homes v HMRC

In Fish Homes v HMRC [2020] UKFTT 180 (TC) (8 April 2020)  the First-tier Tribunal (FTT) held that a flat with defective cladding was suitable for use as a dwelling for the purposes of the 15% rate of SDLT. Although the taxpayer carried out a property rental business and the flat was acquired for the purposes of that business a non-qualifying individual was permitted to occupy the flat within three years of the effective date of acquisition so relief from the 15% rate was clawed back. 

The taxpayer company (F) acquired a vacant flat for the purposes of its property rental business. Following completion it discovered that it could not let the flat on a formal tenancy because the block was rendered with dangerous cladding. While remedial work was carried out the daughter of F’s directors and majority shareholders and her friend occupied...