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In Zyrieda Denning, MH Hants Limited & MP Hants Limited v HMRC [2021] UKUT76 (LC), the Upper Tribunal (UT) determined that the market value of a leasehold interest, for Stamp Duty Land Tax (SDLT) in two care homes was substantially less than that calculated under the RICS principles. The RICS valuation included separate goodwill which was not chargeable to SDLT.

The UT found the value of the leasehold interest calculated under the RICS guidance only represented goodwill and not any additional premium on the lease. There was no premium on the lease that could be subject to SDLT as:

The UT determined that the value of the leasehold interest for both care homes was nil.

Useful guides on this topic

Goodwill: trade-related properties
What are the tax and accounting issues when valuing goodwill in connection with the purchase or sale of a trade-related property? What are HMRC's views? What does case law tell us?

Incorporating an existing business
This guide explores the main issues when a sole trader's business is incorporated into a company.

SDLT: at a glance
What is Stamp Duty Land Tax (SDLT)? What are the rates of Stamp Duty Land Tax (SDLT)?

Discovery Assessments
When can HMRC issue an assessment outside of the normal statutory time limits? What conditions must be met? What are your rights of appeal and defences?

How to appeal an HMRC decision 
Disagree with a HMRC decision? How to appeal, what type of decision can you appeal, what are your different options when you disagree with HMRC? What are the key steps in making an appeal?

External links

Zyrieda Denning, MH Hants Limited & MP Hants Limited v HMRC [2021] UKUT76 (LC)


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