A property in Scotland with the legal title in the taxpayer’s sole name, which was sold to a co-habitant, was part of a dwelling house that was the only or main residence of the taxpayer, and the co-habitant did not hold a beneficial interest in the property.

On 24 January 2013, the appellant sold a property, the legal title of which was in his sole name, to his partner (RM) for £200,000. As he considered the property (Benko) to be an ancillary part of his only or main residence, the appellant did not disclose the sale in his self-assessment return for the tax year 2012/13. Following an enquiry into the return, HM Revenue and Customs (HMRC)