Occupation of property for only or main residence relief

The taxpayer had bought a property in 2001 and moved into it with her daughter. In 2012 she explained it was agreed that her daughter and her husband would live in that flat which would be partly gifted and partly sold to them. The taxpayer bought another flat June 2013 into which she moved after her daughter’s wedding. She sold this flat in November 2013 having made substantial improvements and claimed only or main residence relief.

HMRC refused on the ground she had never occupied the flat as a residence or if she had it was not her main residence. In the further alternative HMRC argued that if the flat was her main residence relief was not due because she had bought it to realise a gain from its sale.

The First-tier Tribunal agreed with HMRC that there was no evidence to show the...