No relief

The taxpayers a married couple bought a property in County Antrim in September 2004 with the intention of using it for short-term holiday lettings.

It was let for 64 days during the 12-month period ending 8 July 2006 which was also the first day of a 14-day letting period. The last letting ended on 9 December 2006 and the property was sold in June 2007.

HMRC assessed the taxpayers to capital gains tax on the proceeds. The couple appealed on the grounds the property was let for more than 70 days in the first year of letting and taper relief should be spread over the whole period in which the property was available to be used as furnished holiday lettings.

The taxpayers argued that although the property was occupied for only 64 days in the first year it was let for more than...