Only or main residence relief claimed on renovated house

The taxpayer bought a property B in August 2011 renovated it and then sold it in April 2013. She claimed only or main residence relief on the gain under TCGA 1992 s 222. HMRC refused saying she had lived elsewhere during the period of ownership. It accepted that she had spent some time in B but the nature and extent of that occupation was not enough to qualify for s 222 relief.

The taxpayer appealed.

The First-tier Tribunal said the question of when occupation become residence was one of ‘fact and degree’. The test of residence was usually one of quality. There had to be evidence to support a claim that a property was the taxpayer’s only or main residence.

In this case the taxpayer had not said how many days she lived in B nor had she produced any utility bills to establish...