Failure to prove occupation for only or main residence relief

The taxpayer bought a house in Hampstead in 1994. From 1995 to 2013 she let it and then sold it in February 2014. She claimed only or main residence relief (TCGA 1992 s 222 and s 223) on the basis she had lived in the property as her main residence for the last six months of her ownership.

In 2007 she bought another residence in East Sussex. This included a livery which she said she intended to run as a business. HMRC claimed this was her main home and that she had never lived in the Hampstead property or if she had not with any degree of permanence. It refused only or main residence relief.

The taxpayer appealed.

The First-tier Tribunal concluded that the taxpayer bought the livery as place to live. There was no evidence that she had assessed its potential as a business before buying it...