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 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.