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13 February 2015
P Brookes (TC4252)
The taxpayer bought a house for £110,000 in September 2006, which gave to his girlfriend in March 2007, by which time the property’s value had increased to £132,500.
He never lived at the address and did not show the gain in his tax return.
HMRC assessed the gain to capital gains tax and imposed a penalty for fraudulent delivery of a return. The taxpayer appealed.
The First-tier Tribunal found the taxpayer did not use the house as his only or main residence, and the transfer of the property was not exempt because it was not between spouses or civil partners.
The fact he chose not to charge his girlfriend was irrelevant. The capital gain remained his.
The appeal was dismissed.
