An attempt to reduce Stamp Duty on a house purchase by claiming that one room was used as a home office and grounds were a paddock has been rejected following a legal challenge from HMRC.

The First-tier Tribunal has ruled in Goodfellow v HMRC that the claim was “artificial, strained and contrary to common sense.”

Andrew Levene, a tax consultant at accountancy firm BKL, said: “The Tribunal basically said ‘pull the other one’ because the room in question was connected to the house, had its own bathroom and could be used as a guest room or a games room. It was no different to someone who uses a spare room or even...