Fixtures and Fittings and Stamp Duty

Have you ever been confused by the Stamp Duty Land Tax (SDLT)/Land Transaction Tax (LTT) rates on fixtures and fittings?

In 2012, the case of Orsman v HMRC shed some light on the issue. The court noted that there was no presumption that HMRC guidance is correct and it is only persuasive. Chattels traditionally not attached to the property, such as carpets, curtains and free standing furniture would not incur SDLT/LTT charges.

However, HMRC Guidance ‘What to include in a Stamp Duty Land Tax calculation’ states that certain fittings such as bathroom and kitchen appliances may be included as part of the chargeable consideration.

The Tribunal drew up two lists; one containing items which were non-land items like movable wardrobes, brass porthole mirrors etc; while another list contains less clearly chattel-like items such as hanging central lanterns, Venetian blinds etc which may form part of the chargeable consideration depending on their particular facts.

It is important to note that ultimately it is up to the court or tribunal to decide what legislation means and if HMRC guidance is right or wrong.