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Higgins decision on main property relief

06 November 2018 / Lisa Macpherson
Issue: 4671 / Categories: Comment & Analysis

Schrödinger’s flat

KEY POINTS

  • The Upper Tribunal finds no justification for only or main residence relief for a period before a flat could be occupied.
  • Nothing in TCGA 1992 s 222 to s 224 could justify a narrow construction to a period of ownership.
  • The contract to purchase was not conditional; it was a simple contract for sale and purchase.
  • The gain was calculated by reference to the purchase and sale – the dates of acquisition and disposal for capital gains tax purposes under TCGA 1992 s 28.
  • Extra Statutory Concession D49 extends the period of residence for a newly acquired dwelling but offered no relief in this case.
  • Will HMRC now review previous disposals involving off-plan purchases?

Who knew that quantum physics would have a...

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