Summary and implications  

Following our recent briefing on the DV3 decision, the Tax Tribunal has confirmed that HMRC have submitted an application to appeal the First Tier Tribunal's decision.

  • HMRC’s decision should not come as a shock as it was widely expected that they would appeal considering the sums believed to be involved.  
  • HMRC left it until the 56th day to lodge their application. This is the maximum time allowed under the Tribunal’s rules.
  • HMRC’s application will now be considered by the First Tier Tribunal. If they refuse permission to appeal, HMRC will have a right to appeal direct to the Upper Tribunal. This process could take some time.

The decision

The First Tier Tribunal held that the taxpayer was not required to pay SDLT on a transaction which relied on sub-sale relief and the partnership rules. For more information on the case, please click here to read our recent briefing.