Electoral red herring

The taxpayer moved into 95 Rowan Avenue in 1994. He bought and renovated the property shortly after.

Four years later he purchased another property with his girlfriend but did not sell 95 Rowan Avenue until 2000. He did not include the disposal on his tax return.

HMRC opened an enquiry and concluded the taxpayer was not entitled to tax relief on the sale of 95 Rowan Avenue because it had never been his only or main residence.

For example he stayed at his parents’ house over Christmas 1996 and spent a lot of time at his girlfriend’s flat. And he had never registered to vote while at the Rowan Avenue property.

The Revenue assessed the taxpayer to capital gains tax on the disposal based on its own valuation.

The First-tier Tribunal found the taxpayer had lived at 95 Rowan Avenue between 1994 and 1998. He stayed...