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This is an extract from the SDLT manual, this is taken verbatim and unedited as published:

SDLTM09815 - SDLT - higher rates for additional dwellings: interests treated as owned by an individual, trusts, children [including children subject to the Mental Health Acts]

Where an individual is a legal and beneficial owner of an interest, they will own that interest for the purposes of Condition C, but there are a number of other situations in which an individual will be treated as owning an interest in another dwelling.

Bare Trusts
Where an individual has absolute beneficial ownership of an interest in land but legal ownership is held by another person (as in a bare trust or nominee arrangement) the individual with beneficial ownership is treated for the purposes of Condition C as owning that interest [Para 3 Sch 16 FA 2003 and para 11(2) and (3) Sch 4ZA FA 2003]. This also applies where the beneficiary of the trust would be absolutely entitled but for being underage, or disabled, in a way that prevents them from being legally capable of owning property.

Trusts
Where a dwelling is owned by another person subject to a trust which gives an individual a right to occupy the dwelling for life or the right to the income earned in respect of the dwelling, that individual is treated as owning the interest [Para 11(1) and (3)]. This treatment will not apply to interests in dwellings which are trust property of a trust that gives the trustee a discretion to apply income between a class of beneficiaries or a trust which accumulates income.

Children
Where a minor child would be treated as owning an interest in land because they are a beneficiary of a trust, the parents of that child (and, if the parents are not married to one another, the spouses or civil partners, if any, of those parents) are treated for the purposes of Condition C as owners of the interest [Para 12].

Now read the bare trusts paragraph and the children paragraph and explain to me how they can both be correct?

I suspect the AR situation is that it isn't a bare trust and therefore the children paragraph applies.

Hopefully this incident will be enough to persuade politicians of all shades that the tax system is far too complicated and needs to be reformed.