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Builder’s disposals of three residences were not part of a trading activity

By Mark McLaughlin, February 2024

Three properties were not purchased with a view to disposal at a profit in short order after significant work was carried out but were purchased to be a home for the appellant’s family and sold when circumstances changed, such that the transactions were not trading in nature, and principal private residence relief applied to each disposal.   

Summary 

Three properties were not purchased with a view to disposal at a profit in short order after significant work was carried out but were purchased to be a home for the appellant’s family and sold when circumstances changed, such that the transactions were not trading in nature, and principal private residence (PPR) relief applied to each disposal. 

Background 

The appellant sold three residential properties: (1) ‘Ringmer’ – purchased in November 2008 as two flats for £760,000 and sold as a

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