Let for investment

The taxpayer bought a property 180 Grange Road in September 2001 and sold it in December 2005.

HMRC assessed him to capital gains tax on the gain on the basis the house had been held as an investment. The taxpayer appealed claiming no chargeable gain arose because the sale was a disposal of trading stock.

He said his aim had been to buy develop and sell property – but the business had been hit by cash flow difficulties and he let 180 Grange Road to finance his other trading activities.

The First-tier Tribunal said there was no reliable evidence the house had been purchased as trading stock. It was let very soon after it was acquired and continued to be let until its disposal.

The judge did not accept that the property was let as a temporary measure because it was let before financial...