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SDLT mixed use – beware the traps

A recent case has shown how increasingly punishing HMRC are being over the 'mixed-use' rate for Stamp Duty Land Tax.

Many consider that the recent case of Dr David Hyman and another v HMRC [2019] UKFTT 469 (TC) presents another potential tax problem for the farming community. The case again shows how HMRC are being increasingly punishing over the “mixed-use” rate for Stamp Duty Land Tax (SDLT) which can favour the sale of a farmhouse/cottage with some land as part of a farm restructuring strategy with tax efficiency.

Many argue that the future of farming is potentially bleak with the loss of the Basic Payment Scheme (BPS) in 2021, the uncertainty of Brexit and politics. The Agriculture Bill has still to become an Act but with more focus on “public products” than food production there is a worry.