Court of Appeal rules on the scope of “residential property”

The Court of Appeal has released its anticipated judgment in Mudan v HMRC [2025] EWCA Civ 799 concerning whether a building is “suitable for use for as a dwelling” for SDLT purposes. The appeal concerned a property which was acquired at a time when it was vacant and in need of repairs. The First-tier Tribunal had held that there were a series of works which were required before a reasonable or sensible person would live in it. The FTT nevertheless held that it was suitable for use as a dwelling within the meaning of s.116 Finance Act 2003.

The Court of Appeal has upheld the decisions of the tribunals below and in particular has endorsed the “workable, practicable” guidance which had been given by the Upper Tribunal. There are understood to be a large number of enquiries and appeals which have been waiting behind this appeal.

Michael Ripley acted for HMRC.