All sorts of SDLT questions ranging in size and complexity (there are no stupid SDLT questions). From the potential application of the SDLT GAAR to non-tax driven steps, to tribunal appeals on various HMRC decisions. The disconnect between the extent to which residential property lawyers are expected to advise on the tax to the level of knowledge and expertise one needs to do so is extraordinary sometimes.
If you could make one change to a tax law or practice, what would it be?
I would try to accelerate the length of time a tax dispute takes to be determined. The period from an enquiry being closed, HMRC’s decision is reviewed and the First-tier Tribunal determines the appeal is often years. Tax disputes will always arise. So it’s important for the system to resolve them quickly and cheaply for both sides. I don’t think that aim is met in a significant proportion of cases.
What do you know now that you wish you’d known at the start of your career?
Clients don’t want a generic narrative of the scheme and policy of the legislation. What they really want is their adviser’s view on the reach and effect of the legislation on specific facts. The value of original thought applied to a solid understanding of the relevant facts should not be underestimated.
Are there any new rules that are causing a particular problem in practice?
The abolition of SDLT multiple dwellings relief will have a negative impact on transactions in built-to-rent, affordable housing and purpose-built student accommodation. These are exactly the type of transaction that the relief was intended to help. The change will result in fewer homes being built unless a targeted relief is introduced.
Has a recent tax case caught your eye?
Yes, the First-tier Tribunal appeal in Suterwalla [2023] UKFTT 450 (TC). It’s a rare example of an SDLT appeal on mixed-use succeeding. The striking thing is that the non-residential use in question was created by the buyer after completion (albeit before the midnight of the completion date) and merely involved the grant of a lease of a paddock to an individual to graze two horses for private purposes only. Understandably, HMRC appealed the decision to the Upper Tribunal and the result of that appeal is expected imminently.
What are clients currently asking about?
People are asking about what tax changes might occur as a result of the general election. And obviously this isn’t specific to stamp taxes. The extent to which tax changes are made for political capital rather than economic effect is, I suppose, a cost of an effective democratic system.
Finally, you might not know this about me but…
I think my wife is trying to kill me. She has bought me various adrenaline gift experiences over the years, including loop-the-loop wing-walking, skydiving, micro-light flying, and bobsleigh training. The latest is tandem hang-gliding with a man called Tarzan!
All sorts of SDLT questions ranging in size and complexity (there are no stupid SDLT questions). From the potential application of the SDLT GAAR to non-tax driven steps, to tribunal appeals on various HMRC decisions. The disconnect between the extent to which residential property lawyers are expected to advise on the tax to the level of knowledge and expertise one needs to do so is extraordinary sometimes.
If you could make one change to a tax law or practice, what would it be?
I would try to accelerate the length of time a tax dispute takes to be determined. The period from an enquiry being closed, HMRC’s decision is reviewed and the First-tier Tribunal determines the appeal is often years. Tax disputes will always arise. So it’s important for the system to resolve them quickly and cheaply for both sides. I don’t think that aim is met in a significant proportion of cases.
What do you know now that you wish you’d known at the start of your career?
Clients don’t want a generic narrative of the scheme and policy of the legislation. What they really want is their adviser’s view on the reach and effect of the legislation on specific facts. The value of original thought applied to a solid understanding of the relevant facts should not be underestimated.
Are there any new rules that are causing a particular problem in practice?
The abolition of SDLT multiple dwellings relief will have a negative impact on transactions in built-to-rent, affordable housing and purpose-built student accommodation. These are exactly the type of transaction that the relief was intended to help. The change will result in fewer homes being built unless a targeted relief is introduced.
Has a recent tax case caught your eye?
Yes, the First-tier Tribunal appeal in Suterwalla [2023] UKFTT 450 (TC). It’s a rare example of an SDLT appeal on mixed-use succeeding. The striking thing is that the non-residential use in question was created by the buyer after completion (albeit before the midnight of the completion date) and merely involved the grant of a lease of a paddock to an individual to graze two horses for private purposes only. Understandably, HMRC appealed the decision to the Upper Tribunal and the result of that appeal is expected imminently.
What are clients currently asking about?
People are asking about what tax changes might occur as a result of the general election. And obviously this isn’t specific to stamp taxes. The extent to which tax changes are made for political capital rather than economic effect is, I suppose, a cost of an effective democratic system.
Finally, you might not know this about me but…
I think my wife is trying to kill me. She has bought me various adrenaline gift experiences over the years, including loop-the-loop wing-walking, skydiving, micro-light flying, and bobsleigh training. The latest is tandem hang-gliding with a man called Tarzan!
