Only or main residence relief claim on two properties

The taxpayer moved out of the matrimonial home in 2005. In December 2005 he bought a new property and lived there until he sold it in March 2006. He did not claim only or main residence relief on that because it had been a temporary place to stay.

In April and May 2006 he bought two more properties which he sold the following August and October. He claimed only or main residence relief on both gains on the basis these each constituted his permanent home. HMRC refused the claim.

The First-tier Tribunal said the taxpayer was aware of the need for his occupation of the properties to have a degree of permanence having declared the sale of the first flat he bought on his return. From his evidence it was clear that when he bought the second and third properties he hoped for reconciliation with his wife. This indicated...