This week's opinion

One should be taxed by law and not be untaxed by concession said Walton J in the landmark Vestey case [1977] STC 414. I doubt readers will disagree. The status of HMRC’s extra-statutory concessions (ESCs) continues to be the subject of much controversy.

A recent example is McHugh (TC6605). The taxpayers acquired land in 2004 and built a house but for reasons not specified they did not move into it until 2007. When they sold the house they claimed only or main residence relief on the whole gain. HMRC disagreed saying that they did not occupy the property between 2004 and 2007. ESC D49 allows a one-year gap between acquiring land and moving into a house. This is extended to two years if there are good reasons for the delay. HMRC said the concession did not apply because the gap was more than two...