The appellant’s appeal against HMRC’s refusal to allow ATED relief for a property interest held in the course of a property development trade was dismissed as there was insufficient evidence to establish that the appellant was carrying on such a trade.

The appellant purchased a residential property in 1993 for £1.25 million. In the period between that purchase and 2007: (a) the property was occupied from time to time by persons permitted to do so by the appellant’s directors; and (b) certain features were added to the property. From 2008, the use of the property declined; from then until the commencement of works on the property in April 2016, it was occupied solely by domestic staff. The appellant decided to sell the property in 2011 and it was placed on the market at an asking price of £13.5 million.

In the absence of anyone willing to buy the