Lo TC 0605 [2018] – Principal Private Residence


The First Tier Tribunal considered if the tax payer’s occasional occupation at the property over a period of time amounted to her making it her principal residence. Although the tax payer tried to convince the judges that making the property her main residence was always her intention, the Tribunal was not convinced that this was the case. The Tribunal considered a series of factors and events in the tax payer’s life which pointed towards the fact that this property was not being used as her main residence. As a result, the tax payer had to pay the capital gains tax of £105,294 and penalties of £21,058.

Our analysis: In our view, this could have been concluded much sooner outside of the Tribunal with some form of a settlement which would have been better than the Tribunal result. For this reason, we strongly feel that specialist tax advisers should be appointed where a tax dispute is getting out of hand.

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