A taxpayer appeal against higher residential rates of tax failed at the FTT (Hayes v The Welsh Revenue Authority [2023] UKFTT 280 (TC)).
The taxpayer argued that her involvement in the purchase and ownership of the property was simply a “paper exercise” to help her daughter to buy the property. Her daughter did not, on her own, meet the affordability requirements to obtain the necessary mortgage and therefore the mortgage company required Mrs Hayes to become a borrower on the mortgage as well. She never had any real interest in the property and, as soon as her daughter’s affordability requirements had improved, she would come off both the mortgage and the deeds of the property.
There were no real legal grounds for appeal, which was therefore dismissed. The FTT did not have the power to consider whether the policy for LTT higher rates transactions was fair or morally right.
https://www.bailii.org/uk/cases/UKFTT/TC/2023/TC08754.html
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