The appellants were entitled to reduce the period of reckonable gain on disposal of their private residence by a 24-month period immediately preceding the appellants taking up residence in the property, based on the tribunal’s decision regarding extra statutory concession (ESC) D49.

The appellants (husband and wife) built themselves a new house between 30 November 2004 and December 2007. They then occupied that house as their principal private residence from December 2007 until 27 September 2010, when the house was sold.

The appellants’ tax returns for the tax year 2010/11 did not contain any entries relating to capital