A couple named Taher and Zhara Suterwalla emerged victorious in a three-year legal battle against the税务局 over a substantial stamp duty charge of £161,250. Their argument that their meadow should not be classified as residential land proved successful.A couple named Taher and Zhara Suterwalla emerged victorious in a three-year legal battle against the税务局 over a substantial stamp duty charge of £161,250. Their argument that their meadow should not be classified as residential land proved successful. In December 2020, the Suterwallas acquired a seven-bedroom property near Henley-on-Thames for £3.6 million. The estate included not only the house but also amenities such as a swimming pool, paddock, and tennis court. Upon paying stamp duty, they labeled the property as “mixed use,” blending residential and non-residential elements, which resulted in a lower tax rate. In England and Northern Ireland, non-residential and mixed-use properties incur a stamp duty rate of 2% on property values between £150,001 and £250,000, and 5% on amounts exceeding that range. Properties designated as exclusively residential typically attract a 5% stamp duty rate on the respective proportions. The Suterwallas argued that their meadow, forming part of the property, should be considered non-residential land and therefore subject to the lower stamp duty rate. They presented evidence such as aerial photographs and agricultural assessments supporting their claim. The税务局, however, maintained that the meadow was an integral part of the residential property and should be taxed accordingly. After three years of legal proceedings, the Tribunal ruled in favor of the Suterwallas. The meadow was deemed non-residential land used for agricultural purposes, justifying the lower stamp duty rate. This victory not only saved the couple a significant amount of money but also established a precedent for similar cases involving the classification of land for stamp duty purposes.
A couple have won a three-year battle with the taxman over a £161,250 stamp duty charge after successfully arguing that their meadow was not residential land.
Taher and Zhara Suterwalla bought a seven-bedroom house with a swimming pool, paddock and tennis court near Henley-on-Thames for £3.6 million in December 2020. When they paid stamp duty, they declared the property as “mixed use” – part residential, part non-residential – meaning they paid a lower rate.
In England and Northern Ireland, stamp duty is levied on non-residential or mixed-use properties at 2 per cent of the value of the property between £150,001 and £250,000 and 5 per cent on anything above that. For properties that are wholly residential, buyers normally pay 5 per cent stamp duty on the
