A Marlow couple’s recent success in reclaiming £370,000 in stamp duty on a £4.5 million riverside home highlights an unusual tax quirk that property investors should note. Alan Wood and Elizabeth Veitch purchased a seven-bedroom freehold house in June 2023, overlooking the River Thames, and were able to argue that the towpath adjacent to their property was not part of the public highway. This classification allowed them to treat the land as part of their private estate, reducing the stamp duty land tax (SDLT) liability significantly.
The case exposes how the boundaries of public and private land can materially affect SDLT calculations. Typically, stamp duty is charged on the total purchase price of a property including any associated land. However, if a strip of land such as a towpath is deemed public highway, it can complicate the valuation and increase the tax burden. By successfully challenging this, the couple effectively excluded the towpath from the taxable estate, leading to a sizeable refund.
For investors, this sets a reminder to scrutinise land ownership and rights of way closely when acquiring riverside or waterfront properties. Many high-value homes include adjacent strips of land that may not be clearly defined as public or private. Proper legal advice and title investigations could uncover opportunities to reduce SDLT exposure, particularly on properties with complex boundaries or historic land use.
While this kind of refund is unlikely to be common, it underscores the value of detailed due diligence and the potential impact of seemingly minor land designations on tax. The case also raises questions about how SDLT rules might evolve to address borderline cases, which could affect future high-end property transactions.
Source: https://www.thisismoney.co.uk/money/mortgageshome/article-15609563/Towpath-loophole-means-Marlow-couple-claw-370-000-stamp-duty-seven-bed-home.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
