Confused evidence

The taxpayer bought a property jointly with another party in March 2007 for £1.25m. They sold the house two months later for £1.8m.

The taxpayer did not include details of the sale in his tax return for 2007/08 assuming the gain was subject to only or main residence relief under TCGA 1992 s 222.

HMRC issued a discovery assessment in December 2011 and charged capital gains tax. The taxpayer appealed saying he had lived in the property from March 2007 to May 2007.

The First-tier Tribunal found there was evidence the taxpayer planned to live in the property but there was nothing to show he ever did so; he appeared to continue to live in another house during the period in question.

The judge noted “clear evidence” that the taxpayer had decided to market the property before completion on it.

The tribunal added that the evidence...