Property tax
Summerhouse not an independent dwelling
The First-tier Tribunal (FTT) has found that a summerhouse with a lavatory was not a separate dwelling. Although it was used by the family, it was not suitable for use as a dwelling on its own due to the lack of a shower or bath. Multiple dwellings relief (MDR) was refused.
The taxpayer purchased property consisting of a main house, a cottage, and a ‘summerhouse’. He claimed MDR on the basis that these were three separate dwellings. HMRC accepted that the house and cottage were individual dwellings, so just the nature of the summerhouse was disputed.
This building was an independent structure in the property’s garden, comprising of a living/kitchen area with an ensuite lavatory. It was not particularly private as three of the four walls were French windows looking out over the garden. It was registered for council tax four months after the sale, but did not have separate utility bills nor postal address. The taxpayer explained that it was primarily used by his severely disabled daughter, aged 12, and was suitable as a dwelling for her. No shower or bath were present, but she had no need of them as she would wash using the basin. He argued that it would be discriminatory not to take account of the fact that the needs of a disabled person in terms of hygiene might be different from those of a non-disabled person. Alternatively, a portable bath could be used. He also argued that as the summerhouse had been accepted as a separate dwelling for council tax purposes, it would be inconsistent for HMRC to treat it differently.
The FTT found for HMRC. The key element in dismissing the appeal was the washing facilities, and its small size was also a factor. For most people, a permanent bath or shower would be needed to meet hygiene needs with the amount of settled permanence to class a building as a dwelling. The fact that the taxpayer’s daughter might not need them was not sufficient to displace this, first as she lived between the house and summerhouse, so did not use it as a single dwelling meeting all her needs. Also, the objective test is wider than the needs of one individual.
Town v HMRC [2025] UKFTT 1210 (TC)
From Tax Update November 2025, published by S&W Partners LLP
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