In A Dower and another v HMRC [2022] UKFTT 170 (TC) (27 May 2022), the FTT held that an annex did not constitute a separate dwelling for SDLT purposes, even though it had been let out separately to business guests via Airbnb. The FTT said: ‘I do not doubt that the Annex in question has been found to be suitable accommodation by Airbnb users. However, the relevant comparator of suitability for Airbnb usage is hotel accommodation, which falls to be categorised as non-residential property. The commonality between hotel and Airbnb is the temporary nature of the accommodation in terms of days, or a week or two at a time, rather than months. In contrast, a place suitable for use as a dwelling is a place where “one lives, regarding and treating it as home”. Whilst a place suitable for use as a dwelling is undoubtedly suitable for Airbnb usage, the converse is not self-evident, as illustrated by the factual matrix in the present case.’ Read the decision.
In I Tedesco v HMRC [2022] UKFTT 171 (TC) (27 May 2022), the FTT held that the cost of repaying a loan that had been made to a company was not allowable expenditure when calculating the CGT on a disposal of that company's shares, even when repaying the loan was a condition of the share sale. The expenditure increased the value of the shares but was not ‘on’ the shares, nor was it reflected in their state or nature. Hence, it was not allowable expenditure and did not reduce the taxable capital gain on the share disposal. Read the decision.
In A Dower and another v HMRC [2022] UKFTT 170 (TC) (27 May 2022), the FTT held that an annex did not constitute a separate dwelling for SDLT purposes, even though it had been let out separately to business guests via Airbnb. The FTT said: ‘I do not doubt that the Annex in question has been found to be suitable accommodation by Airbnb users. However, the relevant comparator of suitability for Airbnb usage is hotel accommodation, which falls to be categorised as non-residential property. The commonality between hotel and Airbnb is the temporary nature of the accommodation in terms of days, or a week or two at a time, rather than months. In contrast, a place suitable for use as a dwelling is a place where “one lives, regarding and treating it as home”. Whilst a place suitable for use as a dwelling is undoubtedly suitable for Airbnb usage, the converse is not self-evident, as illustrated by the factual matrix in the present case.’ Read the decision.
In I Tedesco v HMRC [2022] UKFTT 171 (TC) (27 May 2022), the FTT held that the cost of repaying a loan that had been made to a company was not allowable expenditure when calculating the CGT on a disposal of that company's shares, even when repaying the loan was a condition of the share sale. The expenditure increased the value of the shares but was not ‘on’ the shares, nor was it reflected in their state or nature. Hence, it was not allowable expenditure and did not reduce the taxable capital gain on the share disposal. Read the decision.
