SDLTM00440 - Scope: what is chargeable: land transactions: garden or grounds - definitions

(This page was introduced on 25 June 2019)

Considering whether land is garden or grounds- Definitions

Limb (b) of the residential property definition in section 116(1) FA2003 refers to:

  • 鈥榣and that is or forms part of the garden or grounds of a building within paragraph (a) (including any building or structure on such land)鈥�

The language of the statute should be given its natural meaning, so dictionary definitions can be helpful. However, there are many different dictionary definitions of 鈥榞arden鈥� and 鈥榞rounds鈥�. These may be useful indicators when applied to the land, but none are determinative. Generally speaking the definitions of 鈥榞arden鈥� are more helpful than 鈥榞rounds鈥�.

The definition of 鈥榞arden or grounds鈥� has been examined by the courts in the past for other taxes, but only more recently in the context of SDLT. See for example: [Myles-Till [2020] UKFTT 127 (TC), Brandbros [2021] UKFTT 157(TC), Hyman/Goodfellow/Pensfold [2021] UKUT 68 (TCC)]. Cases relating to other regimes can be helpful (see for instance Rockall v Department for Environment, Food and Rural Affairs [2008] EWHC 2408 (Admin)) but we must be careful of not being over reliant on them. For the purposes of SDLT there is no statutory concept of 鈥榬easonable enjoyment鈥� and no statutory size limit that determines what 鈥榞arden or grounds鈥� means.

Other statutory definitions of garden or grounds

Further definitions of 鈥榞arden or grounds鈥� are found within the SDLT legislation:

  • Schedule 4A, Paragraph 7 (3) FA2003 in respect of the higher rates where the consideration exceeds the higher rate threshold.
  • Schedule 4ZA, Paragraph 18 (3) FA2003 in relation to the higher rate for additional dwellings (HRAD) and dwellings purchased by companies.
  • Schedule 6B, Paragraph 7 (3) FA2003 in respect of Multiple Dwellings Relief (MDR).

These schedules use a similar, but not identical definition: 鈥楲and that is, or is to be, occupied or enjoyed with a dwelling as a garden or grounds (including any building or structure on that land) is taken to be part of that dwelling鈥� .

The following guidance pages (SDLTM00440 to SDLTM00480 inclusive) focus on the definition of 鈥榞arden or grounds鈥� within s.116 (1) (b) FA2003.