The taxpayer’s appeal against the rejection by HMRC of a claim for private residence relief was dismissed, as there was no evidence that the taxpayer had occupied the dwelling as a residence at any time during her period of ownership.

The appellant lived in a property (WH) in London. She worked in central London, where she operated a photographic studio. In February 1994, the appellant purchased another property in London (HM) for £175,000. Once purchased, the appellant carried out extensive renovation works to HM, which lasted until February 1995. From 1995 until early August 2013, the appellant let HM to tenants.  

In February 2014, the appellant sold the property for a substantial gain. In her self-assessment return for the tax year 2013/14, the appellant claimed that the amount of the gain chargeable to capital gains tax (CGT) was reduced by principal private