Billionaire developers Christian and Nick Candy have been taxed almost £4million for a single purchase after falling through a legal loophole.
Nick called the HM Revenue and Customs decision ‘patently unfair’ after the brothers were taxed twice for the purchase of a Georgian mansion in London.
Christian, 46, and Nick, 48, were both ordered to pay a stamp duty land tax (SDLT) levy of £1.92million on the west London property.
They fell victim to a law meant to prevent buyers avoiding tax by transferring ownership during the middle of a sale, The Times reported.
A tribunal backed the Government decision last month after Christian started building work on Gordon House despite not finalising the purchase – which triggered a rule that the purchase was ‘substantially performed’.
Nick called the HM Revenue and Customs decision ‘patently unfair’ after the brothers were taxed twice for the purchase of a Georgian mansion (pictured) in London
Nick now lives in the property with his wife, Australian actress Holly Valance (pictured together in 2015), and their children. He said the rules were unfair
This meant when he decided not to move in and instead gave it to his brother – who completed on the purchase – he still had to pay stamp duty.
His brother, as the one to have completed the sale, then also had to pay.
When Christian tried to claim a refund because he never personally completed on the property, he was told he transferred ownership six months too late.
A verdict published earlier this month at the upper tax tribunal found under HMRC rules he had only 12 months to transfer ownership without being liable for stamp duty.
Christian (pictured with his wife Lady Emily Compton) originally agreed to purchase Gordon House from the Royal Hospital Chelsea in 2012 – when contracts consisted of two lease agreements for £20million and £48million
Nick and his wife Holly have bought a seven-bedroom mansion (pictured) in the Cotswolds
Christian had taken 18 months to transfer ownership – during which time he began elaborate building works, including a 60ft swimming pool and a cinema, and paid £27.4million.
Christian originally agreed to purchase Gordon House from the Royal Hospital Chelsea in 2012 – when contracts consisted of two lease agreements for £20million and £48million.
The latest decision reversed the ruling of a first-tier tribunal last spring that found in the brothers’ favour.
Nick now lives in the property with his wife, Australian actress Holly Valance, and their children. He said the rules were unfair.
Marc Selby, a tax partner at Laytons, told the newspaper the ruling should be a warning to buyers ‘to be careful’.
Exterior of luxury apartment complex One Hyde Park apartment complex built by Christian and Nick Candy
In April, this two-storey penthouse in Hyde Park went on sale for a staggering £175million, according to a source with knowledge of the matter
This photo shows the penthouse’s stunning living room, with sofas, coffee tables, pillars and chandelier
This photo shows one of the penthouse’s five bedrooms. It has a window looking out onto Hyde Park in central London
MailOnline has contacted Candy London for comment.
Meanwhile, it was revealed yesterday Nick and his wife Holly have bought a seven-bedroom mansion in the Cotswolds.
They also own a mansion in Los Angeles believed to be worth £17.5million.
Christian owns an estate in Egham, Surrey, which is made up of four properties worth £150million.
He and his wife, Emily Crompton-Candy, were in April given planning permission to dig two tunnels to connect different parts of the estate.
Christian sold his mansion in Regent’s Park, central London, for £104 million last summer.