No continuity

Only or main residence relief claim on formerly let property

In October 2005 the taxpayer bought a flat in Mayfair which he let until January 2009. He also owned a house in which he lived. He then moved into the Mayfair property with the intention of making it his family’s permanent home. He made an election that it should be treated as his main home.

Shortly after he moved in he received an offer to buy the flat. He sold it in July claiming only or main residence relief on the disposal (TCGA 1992 s 222). In support of his claim that the property had become his permanent home he provided an electricity bill addressed to him there and a TV licence addressed to his wife. He also produced a council tax bill for the flat but this was addressed to the taxpayer at his other...