Question of ownership

Claim for only or main residence relief

In 2006 the taxpayer entered into a contract to buy an apartment on the site of an old hotel in London. The apartment did not exist at the time but was a space in a tower. Completion took place in January 2010 and the taxpayer occupied it as his main residence until he sold it in December 2011. He claimed only or main residence relief on the gain under TCGA 1992 s 222.

HMRC accepted relief was due but citing s 28 said the taxpayer’s ownership had begun in 2006 when the contract to acquire the property was entered into. The relief should be confined to increases in value during the period of occupation as a residence so it would not cover those before that. The taxpayer argued his ownership period had started in January 2010 on legal completion...