Hotelly just and reasonable?

08 December 2009 / Nichola Ross Martin

Issue: 4235 / Categories: Comment & Analysis , Capital Gains

The judge took a pragmatic approach to the application of taper relief in IS Jefferies and LA Jefferies. NICHOLA ROSS MARTIN reports

KEY POINTS

Applying taper relief to mixed use assets.
Effect of only or main residence relief.
Taper relief applied to the whole business gain.

Taper relief was repealed in 2008. Many advisers had by then concluded that the way some of the rules operated was fundamentally unfair especially when applying them to gains on mixed use assets and their interaction with certain other CGT reliefs.

The rules seemed so perplexing and interaction so complex that it is unsurprising that some taxpayers chose to ignore them.

A recent First-tier Tribunal decision IS Jefferies and LA Jefferies (TC235) appears to show that this strategy might have paid off for one couple at least.

The rules relating to taper relief were contained in TCGA 1992 Sch A1 and subsequently repealed by

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