Quality of occupation to qualify for only or main residence relief

The taxpayer bought a house in 2007. It required a significant amount of work and he obtained planning permission to extend in March 2008. He married in August 2008 but divorced three years later.

The house was never occupied as the marital home but the taxpayer moved in while divorce proceedings were underway from April 2011. In December 2011 he moved to live with his parents and the house was sold the following year. He claimed only or main residence relief under TCGA 1992 s 222. HMRC refused the claim on the basis there had been no degree of permanence to his living in the property. The taxpayer appealed.

The First-tier Tribunal noted the taxpayer had slept in the house ‘most if not all the nights between April...