G Scatola and others v HMRC

In G Scatola and others v HMRC [2025] UKUT 156 (TCC) (27 May) the Upper Tribunal (UT) dismissed the taxpayers’ appeal against closure notices charging SDLT resulting from a failed avoidance scheme. It also allowed HMRC’s cross-appeal in respect of an alternative discovery assessment. 

The taxpayers entered into a marketed scheme intended to avoid SDLT on the purchase of a residential property. The scheme involved a sub-sale to V Ltd a special purpose vehicle in Guernsey and the grant of a 999-year lease back to the taxpayers. Three SDLT returns were filed: 

• return A in respect of the purchase of the freehold by the taxpayers showing no SDLT due as a result of sub-sale relief; 
• return B filed (by V Ltd) in respect of its purchase of the freehold showing no DLT due...