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Readers' forum: Demolish and build

10 June 2019
Issue: 4699 / Categories: Forum & Feedback
Only or main residence relief with interrupted occupancy.

A client lived in a house as their main residence for two years before deciding to demolish it and build a new property on the same land. This took just under a year to complete and the client has now lived in the new house for a further two years. Can he claim only or main residence relief for only the past two years or for the whole five years? I am aware of the following references but would like assistance from readers on their application and interaction to my client’s situation:

  • HMRC’s Capital Gains Manual at CG64388 and CG64390 regarding land being a separate entity.
  • CG64377 and CG64381 on Varty v Lynes [1976] STC 508 and date of disposal.
  • CG65003 regarding ESC D49.
  • Desmond Higgins (TC05724).
  • CG64760 regarding ‘just and reasonable’.
  • CG64920 and CG64930 regarding the ownership period.

I look forward to hearing from Taxation readers.

Query 19 374 – Home...

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