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Properties Were Not ‘Residences’ For Relief Purposes

By Mark McLaughlin, December 2014
The taxpayer failed to satisfy the tribunal on a balance of probabilities that she had occupied properties as her only or main residence during her period of ownership, for the purposes of claiming principal private residence relief upon their sale.

The appellant purchased a flat as her residence in June 2003. She subsequently purchased a house in March 2004, and sold it in February 2005. The appellant purchased another house in May 2005, and sold it in November 2006. 

The appellant claimed principle private residence (PPR) relief (under TCGA 1992, ss 222, 223) in respect of the house sales in her tax returns for 2004/05 and 2006/07. Following enquiries by HM Revenue and Customs (HMRC), closure notices were issued charging gains on both property sales to capital gains tax, on the basis that no PPR relief was due. The appellant appealed.

The First-tier Tribunal (FTT) considered that the weight of
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